District Not Recorded

Today, President Donald J. Trump and Attorney General William P. Barr announced significant cases related to Joint Task Force Vulcan (JTFV), an initiative launched in August 2019 aimed at disrupting, dismantling, and ultimately, destroying MS-13.

President Trump and Attorney General Barr announced a number of significant cases associated with JTFV, including the first time an MS-13 member has been charged with terrorism-related offenses, a coordinated multi-district takedown of the leadership of the Hollywood clique of MS-13, and the Attorney General’s decision to seek the death penalty against an MS-13 defendant.

“In 2017, the President directed the Department of Justice to go to war against MS-13, and we did just that,” said Attorney General Barr. “In coordination with our partners at the Department of Homeland Security, the Justice Department’s law enforcement components have successfully investigated, charged, and arrested command and control elements of MS-13 responsible for murder. Joint Task Force Vulcan’s operations have significantly degraded MS-13 capabilities. While there is still work to be done, the Department of Justice remains committed to protecting Americans threatened by MS-13, and we will not rest until we have successfully defeated this transnational criminal organization.”

“Today’s announcements are the result of tremendous teamwork and coordination between prosecutors and law enforcement officers across the United States and Central America,” said JTFV Director John Durham. “MS-13 is a violent transnational criminal organization, whose criminal activities respect no boundaries. The only way to defeat MS-13 is by targeting the organization as a whole, focusing on the leadership structure, and deploying a whole-of-government approach against a common enemy.”

In an indictment unsealed yesterday, Melgar Diaz was charged in the Eastern District of Virginia with conspiring to provide material support to terrorists; conspiring to kill or maim persons overseas; conspiring to commit acts of terrorism transcending national boundaries; conspiring to finance terrorism, and; conspiring to engage in narco-terrorism, in addition to racketeering conspiracy and drug trafficking. This is the first time that an MS-13 member has been charged with terrorism-related offenses.

Alexi Saenz was indicted in 2017 in the Eastern District of New York. It is alleged that between 2016 and 2017 he committed seven murders: the Jan. 28, 2016, murder of Michael Johnson; the April 29, 2016, murder of Oscar Acosta; the Sept. 13, 2016, murders of Kayla Cuevas and Nisa Mickens; the Oct. 10, 2016, murder of Javier Castillo; the Oct. 13, 2016, murder of Dewann Stacks, and; the Jan. 30, 2017, murder of Esteban Alvarado-Bonilla. Two of the victims were Brentwood high school students killed with a machete and baseball bat. The Attorney General has filed a Notice of Intent to Seek the Death Penalty for Saenz.

In a 24 count indictment unsealed yesterday, the Eastern District of New York, charged eight MS-13 members, including leaders of the East Coast Hollywood Program, with Racketeer Influenced and Corrupt Organization (RICO) and Violent Crimes in Aid of Racketeering (VICAR) charges related to six murders, two attempted murders, kidnapping, narcotics, and related firearms offenses.

In a 21-count indictment unsealed yesterday in the District of Nevada, 13 MS-13 members, including leaders of the “Hollywood Locos” clique and “Los Angeles Program,” were charged with various offenses including Continuing Criminal Enterprise (CCE), narcotics distribution and weapons charges.

In August 2019, Attorney General Barr created JTFV to carry out the recommendations of the MS-13 subcommittee formed under the Attorney General’s Transnational Organized Crime Task Force, which was the result of President Trump’s February 2017 Executive Order directing the Departments of Justice, State, and Homeland Security, and the Office of the Director of National Intelligence, to coordinate a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13, and restore safety for the American people. The principal purpose of JTFV is to coordinate and lead the efforts of the Justice Department and U.S. law enforcement agencies against MS-13 in order to dismantle the group.

JTFV has successfully implemented the whole-of-government approach to law enforcement relating to MS-13; increased coordination and collaboration with foreign law enforcement partners, including El Salvador, Mexico, Honduras, and Guatemala; designated priority MS-13 programs, cliques and leaders, who have the most impact on the U.S., for targeted prosecutions, and; coordinated significant MS-13 indictments in U.S. Attorney’s Offices across the country, such as the Eastern District of New York, the Eastern District of Virginia, and the District of Nevada.

Federal prosecutors from the Department of Justice’s National Security Division and the Criminal Division, as well as 10 U.S. Attorney’s Offices have been assigned to serve JTFV in full-time capacities: the Eastern District of New York; the Eastern District of Virginia; the District of Nevada; the Southern District of California; the District of Massachusetts; the Northern District of Ohio; the District of New Jersey; the Eastern District of Texas; the District of Utah, and; the District of Columbia. In addition, all Department of Justice law enforcement agencies are involved in the effort – the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service, and; the Bureau of Prisons. The Department of Homeland Security’s Homeland Security Investigations has also played a critical role in JTFV.

Attorney General Barr would also like to thank Attorney General Raul Melara of El Salvador for the assistance of his office, as well as investigators from El Salvador’s Policia Nacional Civil, Centro Antipandilla Transnacional unit for their assistance.

The United States has filed a complaint seeking to bar a Chicago area tax return preparer from preparing federal income tax returns for others, the Justice Department announced today. 

The civil complaint against Anthony Jones was filed in the U.S. District Court for the Northern District of Illinois, and alleges that Jones prepared federal income tax returns for several Chicago area taxpayers that significantly understated his customers’ tax liabilities by fabricating or manipulating his customers’ business income or expenses. The suit also charges that Jones misrepresents his customers’ filing statuses.

According to the complaint, the IRS interviewed several of Jones’ customers, who allegedly stated that they did not generate the business income or incur the business expenses reported on the returns Jones prepared for them, and did not give Jones any reason to believe that such income or expenses were legitimate. The complaint alleges that, by repeatedly understating his customers’ tax liabilities, Jones has caused substantial harm to the United States.

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers.

In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

Hoy, el presidente Donald J. Trump y el fiscal general William P. Barr anunciaron casos importantes relacionados con la Fuerza de Tarea Conjunta Vulcano (JTFV), una iniciativa lanzada en agosto de 2019 destinada a detener, desmantelar y, en última instancia, destruir a la MS-13.

El presidente Trump y el fiscal general Barr anunciaron varios casos importantes relacionados con la Operación Vulcano, entre ellos la primera vez que un miembro de la MS-13 ha sido acusado de un delito relacionado con el terrorismo, la eliminación coordinada y multidistrital del liderazgo de la clica de Hollywood de la MS-13 y la decisión del fiscal general de solicitar la pena de muerte contra un acusado de la MS-13. 

“El Presidente ordenó al Departamento de Justicia que fuera a la guerra contra la MS-13 en el 2017, nosotros lo hicimos”, dijo el Fiscal General Barr. “En coordinación con nuestros socios en el Departamento de Seguridad Nacional, los componentes de aplicación de la ley del Departamento de Justicia han investigado con éxito los elementos de mando y control de la MS-13 responsables de asesinato. Las operaciones de la Fuerza de Tarea Conjunta Vulcano han degradado significativamente las capacidades del MS-13. Aunque todavía queda trabajo por hacer, el Departamento de Justicia sigue comprometido con la protección de los estadounidenses amenazados por la MS-13, y no descansaremos hasta que hayamos derrotado con éxito a esta organización criminal transnacional”.

“Los anuncios de ahora son el resultado del tremendo trabajo en equipo y la coordinación entre los fiscales y los agentes de la ley en los Estados Unidos y América Central”, dijo el director de JTFV, John Durham. “La MS-13 es una organización criminal transnacional violenta, cuyas actividades criminales no respetan límites. La única forma de derrotar al MS-13 es atacando a la organización como un todo, enfocándose en la estructura de liderazgo y desplegando un enfoque de gobierno completo contra un enemigo común”.

En una acusación dada a conocer ayer, Melgar Díaz fue acusado en el Distrito Este de Virginia de conspirar para proporcionar apoyo material a terroristas; conspirando para matar o mutilar personas en el extranjero; conspirando para cometer actos de terrorismo trascendiendo las fronteras nacionales; conspirando para financiar el terrorismo; y conspirando para involucrarse en el narcoterrorismo, además de la conspiración del crimen organizado y el narcotráfico. Esta es la primera vez que un miembro de MS-13 ha sido acusado de delitos relacionados con el terrorismo.

Alexi Sáenz fue acusado en 2017 en el Distrito Este de Nueva York. Se alega que entre 2016 y 2017 cometió siete asesinatos: el asesinato del 28 de enero de 2016 de Michael Johnson; el asesinato de Oscar Acosta el 29 de abril de 2016, los asesinatos de Kayla Cuevas y Nisa Mickens el 13 de septiembre de 2016; el asesinato de Javier Castillo el 10 de octubre de 2016; el asesinato de Dewann Stacks el 13 de octubre de 2016, y el asesinato de Esteban Alvarado-Bonilla el 30 de enero de 2017. Dos de las víctimas eran estudiantes de secundaria de Brentwood asesinados con un machete y un bate de béisbol. El fiscal general ha presentado un Aviso de intención de buscar la pena de muerte para Sáenz.

En una acusación de 24 cargos dada a conocer ayer, el Distrito Este de Nueva York, acusó a ocho miembros de MS-13, incluidos los líderes del Programa East Coast Hollywood, con cargos de Organizaciones corruptas e influenciadas por el crimen organizado (RICO) y Crimen violento en ayuda de la extorsión (VICAR) relacionados con seis asesinatos, dos intentos de asesinato, secuestro, narcóticos y ofensas relacionadas con armas de fuego.

En una acusación de 21 cargos hecha pública ayer en el Distrito de Nevada, 13 miembros de MS-13, incluidos los líderes de la clica “Hollywood Locos” y el Programa de Los Ángeles, fueron acusados ​​de varios delitos, incluida la Empresa Criminal Continua (CCE por sus siglas en inglés), distribución de narcóticos y cargos de armas.

En agosto de 2019, el fiscal general Barr creó la Fuerza de Tarea Conjunta Vulcano para implementar las recomendaciones del subcomité MS-13 creado bajo la Fuerza de Tarea de Delincuencia Organizada Transnacional del fiscal general, que fue el resultado de la Orden Ejecutiva de febrero de 2017 del presidente Trump que ordenaba que los Departamentos de Justicia, Estado y de Seguridad Nacional, y la Oficina del Director de Inteligencia Nacional para coordinar un enfoque que incluía a todo el gobierno para desmantelar las organizaciones criminales transnacionales, como la MS-13, y restaurar la seguridad del pueblo estadounidense. El propósito principal de JTFV es coordinar y liderar los esfuerzos del Departamento de Justicia y las agencias de aplicación de la ley de EE. UU. contra la MS-13 para desmantelarla.

La JTFV ha implementado con éxito el enfoque de la participación de todo el gobierno para la aplicación de la ley en relación con la MS-13; mayor coordinación y colaboración con socios extranjeros encargados de la aplicación de la ley, incluyendo los socios en El Salvador, México, Honduras y Guatemala; programas prioritarios designados MS-13, clicas y líderes, que tienen el mayor impacto en los EE. UU., para enjuiciamientos selectivos; y coordinó importantes acusaciones en contra de la MS-13 en las oficinas del Fiscal de los Estados Unidos en todo el país, como el Distrito Este de Nueva York, el Distrito Este de Virginia y el Distrito de Nevada.

Se han asignado fiscales federales del División de Seguridad Nacional del Departamento de Justicia y la División Criminal, también 10 oficinas del fiscal General de los Estados Unidos para prestar servicios a la JTFV a tiempo completo: el Distrito Este de Nueva York; el Distrito Este de Virginia; el Distrito de Nevada; el Distrito Sur de California; el Distrito de Massachusetts; el Distrito Norte de Ohio; el Distrito de Nueva Jersey; el Distrito Este de Texas; el Distrito de Utah; y el Distrito de Columbia. Además, todas las fuerzas del orden público del Departamento de Justicia agencias están involucradas en este esfuerzo: el FBI, la Administración de Control de Drogas; la Agencia de Control de Bebidas Alcohólicas, Tabaco, Armas de Fuego y Explosivos; el Servicio de Alguaciles Federales de EE. UU., y la Oficina de Prisiones Federales. La división de investigaciones del Departamento de Seguridad Nacional también ha tenido un papel importante en la JTFV.

El fiscal general Barr también agradeció al fiscal general Raúl Melara de El Salvador por la asistencia de su oficina, así como de investigadores de la Policía Nacional Civil de El Salvador, y al Centro Antipandillas Transnacional por su apoyo.

Attorney General William P. Barr has issued the following statement:

“This morning, in the first federal execution in 17 years, Daniel Lewis Lee was executed by lethal injection at USP Terre Haute in accordance with a death sentence imposed by a federal district court in 1999.  Lee, a member of a white supremacist organization, brutally murdered William Frederick Mueller and Nancy Ann Mueller, along with her eight-year-old daughter, Sarah Elizabeth Powell.  After robbing and shooting them with a stun gun, Lee duct-taped plastic bags around their heads, weighed down each victim with rocks, and drowned the family in the Illinois bayou.  On May 4, 1999, a jury in the U.S. District Court for the Eastern District of Arkansas found Lee guilty of numerous offenses, including three counts of murder in aid of racketeering, and he was sentenced to death.  Today, Lee finally faced the justice he deserved.  The American people have made the considered choice to permit capital punishment for the most egregious federal crimes, and justice was done today in implementing the sentence for Lee’s horrific offenses.”

Statement by Department of Justice Spokesperson Kerri Kupec:

“Today, Daniel Lewis Lee faced the justice he deserved.  Although Lee’s execution was originally scheduled to occur on Monday at 4:00 pm, a district court’s last-minute preliminary injunction required the Department of Justice to seek emergency vacatur from the Supreme Court.  After receiving the green-light early on Tuesday morning, the Federal Bureau of Prisons began preparing Lee for the execution; however, a last-minute procedural claim by Lee’s attorney resulted in an additional delay.  The U.S. Court of Appeals for the Eighth Circuit ultimately rejected his claim, clearing the way for his execution.  He was pronounced dead at 8:07 am.

The Attorney General appreciates the hard work, dedication, and professionalism demonstrated by the Federal Bureau of Prisons; the United States Marshals Service; and the law enforcement and legal teams that investigated and prosecuted Lee, and that for many years defended the government’s duty to carry out this lawful sentence.”

FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced that it has ordered Phoenix Attorney Jose A. Bracamonte suspended for 45 days from practice before the Board of Immigration Appeals, the immigration courts, and the Department of Homeland Security (DHS), effective July 15, 2020.

“EOIR will continue to pursue disciplinary actions to address the misuse and manipulation of the asylum process by immigration practitioners. Such actions detract from the timely processing of legitimate asylum claims and undermine the overall integrity of the asylum system,” said EOIR Director James McHenry. Adjudicating Official Irene C. Feldman issued the decision and final order on July 1, 2020, between Bracamonte and EOIR Disciplinary Counsel Paul A. Rodrigues and DHS Disciplinary Counsel Catherine M. O’Connell.

On Nov. 3, 2016, DHS and EOIR jointly initiated disciplinary proceedings against Bracamonte based on complaints that he filed affirmative asylum applications with U.S. Citizenship and Immigration Services for the sole purpose of causing DHS to issue Notices to Appear (NTAs) to his clients, without any intention to pursue asylum or related forms of relief. DHS and EOIR alleged that Bracamonte’s conduct violated the Rules of Professional Conduct (8 C.F.R. § 1003.102). Specifically, Bracamonte made false statements of material fact, and engaged in frivolous behavior, conduct lacking competence, and conduct prejudicial to the administration of justice.

Pursuant to the settlement agreement, Bracamonte acknowledged that his conduct was an abuse of the asylum system. Bracamonte admitted that he engaged in unprofessional and improper conduct when he filed affirmative asylum applications without an indicated basis for asylum or an indication as to any asylum claim, cancelled or otherwise advised clients to fail to appear for asylum interviews before DHS, and did not demonstrate a clear intention to pursue an asylum claim, in order to cause DHS to issue an NTA and place his clients in removal proceedings before EOIR.

Complaints about professional misconduct by private attorneys or accredited representatives may be sent to the EOIR Disciplinary Counsel through Form EOIR-44.

MIAMI, Florida -- Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, remind taxpayers of the July 15 filing and payment deadline and warned against an increase in tax and COVID-19 scams.

Due to COVID-19, the original filing deadline and tax payment due date for 2019 was postponed from April 15 to July 15. Taxpayers filing Form 1040 series returns must file Form 4868 by July 15 to obtain the automatic extension to Oct. 15.

Although the extension provides additional time to file the tax return – it is not an extension to pay any taxes due.  For people facing hardships who cannot pay in full, including those affected by COVID-19, the IRS has several options available to help. The IRS encourages taxpayers to visit IRS.gov as soon as possible to explore these options and avoid accruing interest and penalties after the July 15 deadline.

As the filing deadline approaches, taxpayers should beware of tax and COVID-19 related scams. “Taxpayers cannot let their guard down,” said Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida. “This tax season is particularly attractive to criminals because it coincides with the COVID-19 pandemic, which has placed many people in vulnerable positions.”   

“Taxpayers should remain vigilant in the handling of their personal and financial information as criminals use this as an opportunity to take advantage of vulnerabilities,” said Michael J. De Palma Special Agent in Charge of the IRS Criminal Investigation division in Florida. “IRS-CI will continue to pursue these crimes and the perpetrators will be brought to justice.”

In the last few months, the IRS Criminal Investigation division (CI) has continued to see a tremendous increase in a variety of Economic Impact Payment scams and other financial schemes. CI continues to work with its law enforcement partners to put a stop to these schemes and bring criminals to justice.

Taxpayers can report COVID-19 scams to the National Center for Disaster Fraud. Taxpayers can also report fraud or theft of their Economic Impact Payments to the Treasury Inspector General for Tax Administration (TIGTA). Unsolicited (phishing) e-mails that appear to be from the IRS should be forwarded to phishing@irs.gov.

For the most up-to-date information about the tax filing deadline and IRS impersonation scams, taxpayers can visit IRS.gov.

The Department of Justice will hold a virtual public workshop on July 28th and 29th, 2020, to discuss competition in the licensing of public performance rights in the music industry.  The workshop will provide a further venue for industry stakeholders to weigh in on the American Society of Composers, Authors, and Publishers (ASCAP) and Broadcast Music, Inc. (BMI) consent decrees and their implications for antitrust law enforcement and policy as we enter the third decade of the 21st Century and as music distribution continues to evolve through technological innovation. 

A series of panels will discuss competition issues relating to the various types of public performance licenses currently offered in the marketplace, competition between performing rights organizations (PROs), such as ASCAP, BMI and GMR, and the licensing of music to end-users. Panelists will discuss whether or not certain terms of the ASCAP and BMI consent decrees should be modified, and whether the decrees are inhibiting innovative business models that may hurt consumers or artists. These panels will include executives PROs, songwriters, music publishers, music licenses, legal and economic experts, and other industry stakeholders.

The Department of Justice invited public comments from the public on these topics on June 5, 2019 and the comments can be found here. Interested parties may submit any further non-duplicative comments online now through July 22, 2020, at ATR.MusicLicensing-Workshop@usdoj.gov.

The workshop is free and open to the public and will be webcast from approximately 12:30 pm – 4 pm Eastern Time each day. A recording of the workshop will be available on the Division’s website.  Registration information, an agenda, instructions on accessing the webcast, and a list of speakers will be available in the near future on the event webpage. Members of the press should email Brianna.Herlihy@usdoj.gov to register.

Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact the Antitrust Division at ATR.MusicLicensing-Workshop@usdoj.gov. Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more information.

The Antitrust Division helped lead the International Competition Network (ICN) initiative on cross-border leniency cooperation to fight international price fixing cartels.  The ICN released the “Guidance on Enhancing Cross-Border Leniency Cooperation,” a year-long effort undertaken by the ICN’s Cartel Working Group.  The guidance document is designed to assist competition agencies around the globe in engaging and cooperating with their international counterparts when dealing with leniency applicants and other cooperating companies in cross-border investigations.

“Cooperation with our international partners has been a key priority of the Division and I am proud of our continued leadership in developing consensus with ICN members around this important initiative.  I applaud the hard work of all of the members of the ICN Cartel Working Group who made this guidance document possible,” said Makan Delrahim, Assistant Attorney General for Antitrust.

The Antitrust Division worked with a team of antitrust agencies from around the world to develop the guidance, including the Australian Competition and Consumer Commission, Canada’s Competition Bureau, Chile’s Fiscalía Nacional Económica, Brazil’s Conselho Administrativo de Defesa Econômica, the European Commission’s Directorate-General for Competition, Hong Kong’s Competition Commission, New Zealand’s Commerce Commission, and the co-chairs of the ICN Cartel Working Group’s Subgroup 1, Turkey’s Rekabet Kurumu and Hungary’s Gazdasági Versenyhivatal. 

The Antitrust Division’s efforts were led by Deputy for Criminal Enforcement, Richard Powers, and Deputy for International and Policy, Rene Augustine, and members of the International Section, including International Section Chief, Lynda Marshall, Assistant Chief Michelle Rindone, and other key staff of the Division.  The Guidance on Enhancing Cross-Border Leniency Cooperation is now available on the ICN’s website.  The project complements existing ICN work product on leniency, including a 2017-2018 fact-finding survey and a 2019 report entitled Good Practices for Incentivising Leniency Applications.

A federal judge in San Antonio sentenced 32-year-old Trorice Crawford of San Diego, California, to 46 months in federal prison for his role in an identity-theft and fraud scheme that victimized thousands of U.S. servicemembers and veterans, the Department of Justice announced today.

In addition to the prison term, Chief U.S. District Judge Orlando Garcia ordered that Crawford pay $103,700 in restitution and be placed on supervised release for a period of three years after completing his prison term.

On December 5, 2019, Crawford pleaded guilty to one count of conspiracy to launder monetary instruments.  By pleading guilty, Crawford admitted that from May 2017 to July 2019, he conspired with Robert Wayne Boling, Jr. (a U.S. citizen), and others to steal money belonging to U.S. Servicemembers and veterans.  By pleading guilty, Crawford admitted to recruiting at least 30 individuals (aka “money mules”) who provided their bank account information to receive funds stolen from military affiliated individuals.  On average, each unauthorized transfer from a victim’s accounts ranged from between $8,000 to $13,000.  Crawford kept a percentage of the withdrawn funds for himself and oversaw the transmission of the remaining amounts by means of international money remittance services to Boling and others in the Philippines.

“The Department of Justice will not tolerate fraud on America’s warfighters and veterans,” said Acting Assistant Attorney General Ethan P. Davis of the Department’s Civil Division.  “Working with our partners and using all tools available, we are committed to protecting those who protect us.”

In October, Crawford’s co-defendant Frederick Brown, age 38 of Las Vegas, NV, pleaded guilty to federal charges in connection with this scheme.  Brown, a former civilian medical records administrator for the U.S. Army at the 65th Medical Brigade, Yongsan Garrison, South Korea, admitted that while logged into the Armed Forces Health Longitudinal Technology Application, he illegally captured on his cell phone personal identifying information (PII) of thousands of military members, including names, social security numbers, DOD ID numbers, dates of birth, and contact information.  Brown further admitted that he subsequently provided that stolen data to Boling so that Boling and others could exploit the information in various ways to access Department of Defense and Veterans Affairs benefits sites and steal millions of dollars. 

As asserted in the federal grand jury indictment, Boling, together with his Philippines-based co-defendants Allan Albert Kerr (Australian citizen) and Jongmin Seok (South Korean citizen), specifically used the stolen information to compromise a Department of Defense portal designed to enable military members to access benefits information online. Once through the portal, the defendants are alleged to have accessed benefits information.  Access to these detailed records enabled the defendants to steal or attempt to steal millions of dollars from military members’ bank accounts. The defendants also stole veterans’ benefits payments. Evidence of the defendants’ scheme was detected earlier this year, advancing the investigation that led to the indictment.

The Departments of Defense and Veterans Affairs are coordinating with the Department of Justice to notify and provide resources to the thousands of identified victims.

Boling, Kerr, and Seok are charged with multiple counts of conspiracy, wire fraud, and aggravated identity theft.  Boling, Kerr, and Seok remain in the Philippines.  Measures are being taken to effect their transfer to the Western District of Texas.  Brown remains in federal custody awaiting sentencing scheduled for 10:30 am on September 17, 2020, before Judge Garcia in San Antonio. 

It is important to note that an indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.

The United States is represented by Trial Attorneys Ehren Reynolds and Yolanda McCray Jones of the Department of Justice Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Joseph Blackwell of the U.S. Attorney’s Office for the Western District of Texas. The matter was investigated by agents of the Defense Criminal Investigative Service, and counsel Matthew Freund, along with substantial investigative support from the U.S. Postal Inspection Service, the U.S. Army Criminal Investigation Command, and the Veterans Benefits Administration’s Benefits Protection and Remediation Division. The U.S. Department of State’s Diplomatic Security Service, Philippine law enforcement partners, and the U.S. Attorneys’ Offices for the District of Nevada, the Southern District of California, and the Eastern District of Virginia also provided assistance. Resources from the Department of Justice’s Servicemembers and Veterans Initiative and its Transnational Elder Fraud Strike Force aided in the matter’s investigation and prosecution.

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors.  In particular, in March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep.  The department has likewise conducted hundreds of training's and outreach sessions across the country since the passage of the Act.

Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.  For more information about the U.S. Attorney’s Office for the Western District of Texas, visit its website at https://www.justice.gov/usao-wdtx. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice; information on the Servicemember and Veterans Initiative is at https://www.justice.gov/servicemembers.

The U.S. Department of Justice and U.S. Environmental Protection Agency (EPA) today announced a settlement with J.R. Simplot Company and its subsidiary, Simplot Phosphates LLC (Simplot), involving Simplot’s Rock Springs, Wyoming, manufacturing facility.

 This settlement resolves allegations under the Resource Conservation and Recovery Act (RCRA) at the facility, including that Simplot failed to properly identify and manage certain waste streams as hazardous wastes.  The settlement requires Simplot to implement process modifications designed to enable greater recovery and reuse of phosphate, a valuable resource.  The settlement also requires Simplot to ensure that financial resources will be available when the time comes for environmentally sound closure of the facility. 

Simplot’s Rock Springs facility manufactures phosphate products for agriculture and industry, including phosphoric acid and phosphate fertilizer, through processes that generate large quantities of acidic wastewater and a solid material called phosphogypsum.  The phosphogypsum is deposited in a large pile known as a gypstack, and acidic wastewater is also routed to the gypstack.  The gypstack at the Wyoming facility is fully lined and has a capacity to hold several billion gallons of acidic wastewater. 

This settlement also resolves alleged violations of the Emergency Planning and Community Right-to-Know Act (EPCRA) for Simplot’s failure to report certain quantities of toxic chemicals in accordance with EPCRA standards. 

Under the settlement, Simplot agrees to implement specific waste management measures valued at nearly $20 million.  Significantly, these measures include extensive new efforts to recover and reuse the phosphate content within these wastes and avoid their disposal in the gypstack.  The settlement also includes a detailed plan setting the terms for the future closure and long-term care of the gypstack. The settlement requires Simplot to immediately secure and maintain approximately $126 million in dedicated financing to ensure that funding for closure and long-term care will be available when the facility is eventually closed.

Simplot also agrees to submit revised EPCRA Form R reports (Toxic Release Inventory) for 2004 to 2013 to include estimates of certain metal compounds manufactured, processed, or otherwise used at the facility.  Simplot will also pay a $775,000 civil penalty to resolve both the RCRA and EPCRA claims. 

The agency previously has required through judicial and administrative settlements that 12 phosphate fertilizer facilities complete extensive injunctive relief and bring their operations into compliance with RCRA.

A consent decree formalizing the settlement was lodged today in the U.S. District Court for the District of Wyoming, and is subject to a 30-day public comment period and approval by the federal court. The consent decree can be viewed at the Department of Justice website: www.justice.gov/enrd/Consent_Decrees.html 

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Yesterday, the President’s Commission on Law Enforcement and the Administration of Justice held a hearing on community trust and respect for law enforcement. The hearing was conducted via teleconference and featured expert witnesses who provided testimony and answered questions from the commissioners.

On Wednesday, July 8, 2020, the commission received testimony from Brian Marvel, President of the Peace Officers Research Association of California (PORAC); Dr. Paul Lilly, Judge, Brown County, Texas; Mick McHale, President of the National Association of Police Organizations (NAPO); and Lieutenant Christopher Cook, Arlington (Texas) Police Department.

The hearing focused on community trust and respect for law enforcement. The panelists discussed the importance of building relationships between law enforcement and communities; consideration for tactical gear choices; adding the presence of social workers or mental health professionals to certain types of emergency calls; the importance of public messaging, especially after a critical incident; and consideration for rewarding positive policing rather than relying on, for instance, the quota system, such as traffic stops, to measure success.

For more information on the commission, please visit: https://www.justice.gov/ag/presidential-commission-law-enforcement-and-administration-justice.

Audio recordings and transcripts of the hearings will be posted online once available.

On Wednesday, July 8th Senator Tim Scott hosted Attorney General William Barr in Columbia, South Carolina for two closed-press roundtable events with faith and community leaders and members of law enforcement to discuss restoring relationships between law enforcement and African American communities in South Carolina and across the country.

At Bethel A.M.E Church, Attorney General Barr and Senator Scott met with a group of faith and community leaders across ideological and political spectrums.  Attorney General Barr praised Senator Scott for his work on the Justice Act and the opportunity for the Justice Department to partner with him and his staff on this effort.  The Attorney General continued by underscoring the commitment by the Justice Department to rebuilding trust between law enforcement and the communities they police and upholding the rule of law for safer and better communities.

At a second event in downtown Columbia, Attorney General Barr and Senator Scott and met with members of local, state and federal law enforcement.  Attorney General Barr stated the critical importance of their work, acknowledging the challenges they face and his commitment to necessary reforms.  He continued to affirm his support for the law enforcement officers doing their jobs bravely and righteously to keep their communities safe from harm.

“There is no tougher job in America than being a police officer.  We need these institutions to provide peace and security in society to allow our lives to flourish,” said Attorney General Barr.  “At the same time, whenever you have that kind of institution, you have the possibility of abuse.  We need to support the police so that they’re out there protecting the community, but at the same time we have to be sure that there aren’t these abuses. It’s striking a balance.”

“I’d like to thank Attorney General Barr for making the trip to South Carolina.  We certainly had a great conversation with a lot of leaders, and I look forward to continuing the conversations…I’m hopeful that the next couple of weeks may produce the results that we’re looking for,” said Senator Tim Scott.

Oklahoma Center for Orthopaedic and Multi-Specialty Surgery (OCOM), a specialty hospital in Oklahoma City, Oklahoma, its part-owner and management company, USP OKC, Inc. and USP OKC Manager, Inc. (collectively USP), Southwest Orthopaedic Specialists, PLLC (SOS), an Oklahoma City-based physician group, and two SOS physicians, will pay $72.3 million to resolve allegations under the False Claims Act and the Oklahoma Medicaid False Claims Act of improper relationships between OCOM and SOS, resulting in the submission of false claims to the Medicare, Medicaid and TRICARE programs, the Justice Department announced today.    

The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs.  The Physician Self-Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper financial arrangement, including the payment of compensation that exceeds the fair market value of the services actually provided by the physician and the provision of free or below-market rent and office staff.  Both the Anti-Kickback Statute and the Stark Law are intended to ensure that physicians’ medical judgments are not compromised by improper financial incentives and instead are based on the best interests of their patients.

"Offering illegal financial incentives to physicians in return for patient referrals undermines the integrity of our health care system," said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice Civil Division.  "Patients deserve the independent and objective judgment of their health care professionals."

"It is critical that we protect the integrity of federal health care benefit programs," said U.S. Attorney Timothy J. Downing for the Western District of Oklahoma. "Patients deserve care based on good medicine and informed choice, not the corrupting influence of money and other benefits.  No matter how complex and intertwined modern healthcare economics become, we are committed to ensuring that untainted care is always provided."

"The Defense Criminal Investigative Service is committed to ensuring that TRICARE, the U.S. military healthcare program, continues to provide safe and superior medical care to America's Warfighters," said Michael C. Mentavlos, Special Agent in Charge, Defense Criminal Investigative Service - Southwest Field Office. "Kickback schemes such as those resolved today, undermine our healthcare system, compromise medical decisions, and waste precious taxpayer dollars needed to provide critical care for our Warfighters, their family members, and military retirees."

"Kickback schemes like this drain valuable resources from the federal and state healthcare systems, which go to our most vulnerable," said Oklahoma Attorney General Mike Hunter. "This settlement is substantial and will hopefully send a clear, concise message to those who want to defraud the system – that we will not tolerate these illegal acts in our state. I am pleased we were able to work with our federal partners to achieve this successful outcome."

The settlement resolves allegations that between 2006 and 2018, OCOM and USP provided improper remuneration to SOS and certain of its physicians in exchange for patient referrals to OCOM in the form of (i) free or below-fair market value office space, employees, and supplies, (ii) compensation in excess of fair market value for the services provided by SOS and certain of its physicians, (iii) equity buyback provisions and payments for certain SOS physicians that exceeded fair market value, and (iv) preferential investment opportunities in connection with the provision of anesthesia services at OCOM.  The alleged conduct resulted in the submission of claims for services provided to these illegally referred patients, in violation of the False Claims Act and the Oklahoma Medicaid False Claims Act.  The settlement also resolves issues arising out of USP’s preferential offering of investment opportunities to physicians at four surgery facilities in Texas.  As a result of this settlement, USP will pay $60.86 million to the United States, $5 million to the State of Oklahoma, and $206,000 to the State of Texas.  SOS and two of its physicians, Anthony L. Cruse, D.O. and R.J. Langerman, Jr., D.O., will pay $5.7 million to the United States, and $495,619 to the State of Oklahoma.

Contemporaneous with the civil settlement, OCOM and SOS each entered into five-year Corporate Integrity Agreements (CIAs) with the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG).  The CIAs require, among other things, that OCOM and SOS each maintain a compliance program and hire an Independent Review Organization to review arrangements entered into by or on behalf of their respective entities.  They also increase individual accountability by requiring compliance-related certifications from their key executives. 

"Patients rightly expect providers to deliver the best treatment without thought of financial gain," said Miranda L Bennett, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS).  "Working with our Federal and State law enforcement partners we will continue protecting government health program beneficiaries and taxpayers."

The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims and to receive a share of any recovery.  The whistleblower also alleged claims under the Oklahoma Medicaid False Claims Act.  The qui tam case is captioned United States ex rel. Allison v. Southwest orthopaedic Specialists, PLLC, et al., No. CIV-16-569 (W.D. Okla.).  The whistleblower share to be awarded in the case has not yet been determined.

These matters were investigated by the U.S. Attorney’s Office for the Western District of Oklahoma, the Civil Division’s Commercial Litigation Branch, and the State of Oklahoma Attorney General’s Office.  Investigative assistance was provided by the Office of Inspector General of the Department of Health and Human Services, the Centers for Medicare and Medicaid Services, and the Department of Defense’s Defense Criminal Investigative Service. 

The United States’ investigation and resolution of this matter illustrates its emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

An earlier version of this press release incorrectly stated that the settlement was $77.2 million. The correct amount is $72.3 million.

Last week, the President’s Commission on Law Enforcement and the Administration of Justice continued its series of hearings on community engagement and held a hearing on accreditation. The hearings were conducted via teleconference and featured expert witnesses who provided testimony and answered questions from the commissioners.

On Tuesday, June 30, 2020, the commission received testimony from Dean Register, Director of the Florida Department of Law Enforcement; Walton County (Fla.) Sheriff Michael Adkinson; Brentwood (Tenn.) Police Chief Jeff Hughes; Tim Bourgeois, Executive Director of the Michigan Commission on Law Enforcement Standards; and Colorado Springs (Colo.) Police Chief Vince Niski.

The panelists discussed accreditation and standards in law enforcement. Testimonies focused on the value of accreditation and the impact it has on enhancing law enforcement and building trust in communities, what it takes to develop a successful accreditation program, the differences between state and national models, and the need for credentialing bodies to involve law enforcement practitioners and other subject matter experts to develop and maintain accreditation standards.

On Wednesday, July 1, 2020, the commission received testimony from Dr. Lorie Fridell, Professor in the Department of Criminology at the University of South Florida; Clearwater (Fla.) Police Chief Daniel Slaughter; and Dr. David Klinger, Professor of Criminology & Criminal Justice at the University of Missouri-St. Louis.

The panel focused on interactions and relationships between communities and law enforcement. Testimony delved into the importance of implicit bias training, the impact implicit bias has on harming relationships between communities and law enforcement, and the need for a culture shift across the nation in order for law enforcement at all levels to perform in the safest way possible.

On Thursday, July 2, 2020, the commission received testimony from Sean Sheppard, Founder of Game Changer, and Luann P. Pannell, Ph.D., Director of Police Training and Education for the Los Angeles Police Department.

The panel focused on community engagement and respect for law enforcement. Mr. Sheppard discussed his organization’s model of using community residents to help train law enforcement in community policing and interpersonal communication. Dr. Pannell discussed the importance of adapting training to meet modern needs. For instance, she testified: “There seems to be misinformation that the number of hours of training equates to the significance or the outcome of training, and that’s just not true. It’s the quality and caliber of the training that will matter most when it comes to optimal performance in the field. For every training hour we receive, we should be questioning if it is teaching them to master and replicate the same skills in the field.” 

For more information on the commission, please visit: https://www.justice.gov/ag/presidential-commission-law-enforcement-and-administration-justice

Audio recordings and transcripts of the hearings will be posted online once available.

The Department of Justice today announced $2.2 million in grant funding to law enforcement agencies and stakeholders through the Department’s Office of Community Oriented Policing Services (COPS Office) Community Policing Development (CPD) Microgrants Program.  COPS Office Director Phil Keith announced 29 awards with award amounts ranging from $15,090 to $100,000. 

“The CPD Microgrants Program is a critical resource to advance innovative community policing projects across the country,” said Director Keith.  “These strategic investments from the COPS Office pay huge dividends to state and local law enforcement agencies and the communities that they serve.”

CPD Microgrants Program funds are used to develop the capacity of local, state, and tribal law enforcement agencies to implement community policing strategies.  Applicants were invited to propose demonstration or pilot projects to be implemented in their agency that offer creative ideas to advance crime fighting, community engagement, problem solving, or organizational changes to support community policing in one of the following areas:

• Human Trafficking
• Meeting Rural Law Enforcement Challenges
• Officer Safety and Wellness
• Recruitment, Hiring, and Retention
• School Safety
• Staffing and Allocation Studies
• Victim-Centered Approaches
• Violent Crime
• Youth Engagement

Funding through this program is available for the first time since 2018, following the successful removal of a nationwide injunction.  These awards are being announced at a critical time for our country, when community policing strategies are very much needed to improve police and community relations.

The complete list of awards can be found here. To learn more about CPD Microgrants, please visit https://cops.usdoj.gov/cpdmicrogrants.  For additional information about the COPS Office, please visit www.cops.usdoj.gov.

The Justice Department announced today that it reached a settlement with Bel USA LLC (Bel USA), an online distributor and retailer of customized promotional products located in Miami-Dade County, Florida. The settlement resolves claims that Bel USA discriminated against work-authorized non-U.S. citizens by requiring them to provide specific and unnecessary immigration documents when verifying their work authorization, because of their citizenship or immigration status. 

“Employers must ensure that their employees are properly trained regarding the employment eligibility verification process so that they do not violate federal law by requiring additional, unnecessary work authorization documents based on a worker’s citizenship status,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We look forward to working with Bel USA to ensure its future compliance with the Immigration and Nationality Act’s non-discrimination requirements governing hiring, firing, onboarding, and using E-Verify.”

Based on its investigation, the department concluded that Bel USA routinely requested unnecessary and specific documents — such as Permanent Resident Cards and Employment Authorization Documents — from work-authorized non-U.S. citizens with the right to work in the U.S. to establish their employment authorization. Federal law allows all work-authorized individuals, regardless of citizenship status, to choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States. The Immigration and Nationality Act’s (INA) anti-discrimination provision prohibits employers from requesting more or different documents than necessary to prove work authorization based on employees’ citizenship, immigration status or national origin.

Under the terms of the settlement agreement, Bel USA will pay a civil penalty of $100,000, train its employees about the requirements of the INA’s anti-discrimination provision, and be subject to reporting and monitoring requirements.

The division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.     

Learn more about IER’s work and how to get assistance through this brief video. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email IER@usdoj.gov; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.

The Civil Rights Division wants to hear about civil rights violations. Members of the public can report possible civil rights violations through the Civil Rights Division’s reporting portal.

Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.

El Departamento de Justicia anunció hoy que había llegado a un acuerdo con Bel USA LLC (Bel USA), un distribuidor y minorista en línea de productos promocionales personalizados con sede en el Condado de Miami-Dade, Florida. El acuerdo resuelve acusaciones que Bel USA había discriminado a individuos con autorización para trabajar que no eran ciudadanos de los Estados Unidos al requerir que presentasen documentos migratorios específicios e innecesarios a la hora de comprobar su autorización para trabajar, por motivos de su estatus migratorio o de ciudadanía. 

«Los empleadores deben asegurar que sus empleados sean capacitados adecuadamente en cuanto al proceso de verificación de la elegibilidad para trabajar para que no vulneren las leyes federales al requerir documentos innecesarios de autorización para trabajar por motivos del estatus de ciudadanía de un trabajador», declaró Eric Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles. «Esperamos con interés colaborar con Bel USA para garantizar su futuro cumplimiento con los requisitos antidiscriminatorios de la ley de Inmigración y Nacionalidad que rigen la contratación, la incorporación y el despido de empleados, y el uso de E-Verify».

Con base en su investigación, el Departamento concluyó que Bel USA, de forma rutinaria, pedía documentos específicos e innecesarios, tales como tarjetas de residente permanente y documentos de autorización para trabajar, de individuos con autorización para trabajar que no eran ciudadanos de los EE. UU. con el fin de establecer su autorización para trabajar. Las leyes federales permiten a todo individuo con autorización para trabajar, independientemente de su estatus de ciudadanía, elegir los documentos válidos y legalmente aceptables que desean presentar para demostrar su elegibilidad para trabajar en los Estados Unidos. La ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) prohíbe que los empleadores pidan documentos adicionales o diferentes a los necesarios para demostrar la autorización para trabajar con base en el estatus migratorio o de ciudadanía del empleado o bien por su nacionalidad de origen.

Conforme los términos del acuerdo conciliatorio, Bel USA pagará una sanción civil de 100.000 $, capacitará a sus empleados acerca de los requisitos de la disposición antidiscriminatoria de la INA y se someterá a una serie de requisitos de declaración y supervisión.

La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) de la División es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación con base en el estatus de ciudadanía y la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; las prácticas documentales injustas; las represalias o la intimidación.     

Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. Para más información sobre protecciones contra la discriminación en el empleo, llame a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase a un seminario en línea gratuito; envíe en correo electrónico a IER@usdoj.gov; o visite las páginas web de la IER en inglés y español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery .

La División de Derechos Civiles quiere enterarse de más vulneraciones de derechos civiles. Miembros del público pueden informarnos de posibles vulneraciones de derechos civiles mediante el portal de declaraciones de la División de Derechos Civiles.

Aquellos aspirantes o empleados que creen haber sido sometidos a: discriminación por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; discriminación en el proceso de la verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) con base en su ciudadanía, estatus migratorio o nacionalidad de origen; o represalias pueden presentar una denuncia o deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.

Download Settlement Agreement

Componente(s): 

División de Derechos Civiles

Derechos Civiles - Sección de Derechos de Inmigrantes y Empleados

Attorney General William P. Barr has issued the following statement:

“As we celebrate the 244th anniversary of our nation’s birth, we are reminded that the words of the Declaration of Independence are just as important today as they were the day they were written: ‘We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.’  The Declaration goes on to make it clear that governments exist to secure these rights and derive their power from the consent of the governed.  These words form the foundation of freedom and justice in the United States, and the framework for the rule of law. 

For much of our history, the fruits of justice and freedom were not available to all Americans, and redeeming the promise of the Founding remains a work in progress.  As our nation confronts challenges ranging from a global pandemic to serious unrest and violence, we must recommit ourselves to the timeless principles that give birth to our nation and that bind us together as a people.  At the Department of Justice, we will continue working to uphold those principles by protecting individual rights and enforcing the rule of law.  I wish all Americans a happy Fourth of July, and as the Department of Justice celebrates its 150th  anniversary, I extend particular gratitude to all of our Department employees for the work they do each day, on behalf of the nation we love.” 

United States Attorney Peter G. Strasser and Makan Delrahim, Assistant Attorney General for the Antitrust Division of the Department of Justice, announced that CAJAN WELDING & RENTALS, LTD., a company located in Opelousas, Louisiana, was charged on July 2, 2020 in a one-count bill of information with conspiracy to defraud the United States and to violate the Procurement Integrity Act, in violation of 18 U.S.C. § 371.

According to the bill of information, CAJAN WELDING & RENTALS, LTD. conspired with unnamed co-conspirators to defraud the United States by corrupting and impairing the government procurement process, and by obtaining non-public pricing and cost information in order to obtain subcontract awards and payments from the U.S. Department of Energy in connection with its operation of the nation’s Strategic Petroleum Reserve. 

If convicted, CAJAN WELDING & RENTALS, LTD. faces a maximum fine of $500,000.00, a term of probation of up to five years, and a special assessment of $400.00.

An information is merely an accusation.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt.

The case is being investigated by the United States Attorney’s Office in the Eastern District of Louisiana, the Department of Justice Antitrust Division’s Washington Criminal II Section, and the Department of Energy’s Office of the Inspector General.

The Justice Department today announced a settlement of its race discrimination lawsuit against Guaranteed Auto Sales, a used car dealership in Glen Burnie, Maryland.  The agreement also settles the United States’ claims against the dealership’s owner and manager, Kelly Ann West and Robert Chesgreen.

The settlement resolves claims that Guaranteed Auto Sales discriminated against African Americans in violation of the Equal Credit Opportunity Act by offering different terms of credit based on race to those seeking to purchase and finance used cars. The agreement, which is subject to court approval, was filed today in the U.S. District Court for the District of Maryland.

The settlement requires the dealership to implement a number of specific practices to ensure that loan terms are offered to customers on a nondiscriminatory basis. Specifically, defendants will develop written policies to govern financing decisions, including how down payment amounts are calculated and whether the down payments may be made in more than one installment; post and distribute nondiscrimination notices to potential purchasers; attend training on the requirements of the Equal Opportunity Act; and engage in ongoing record keeping and reporting to the United States. 

“When people borrow money to buy a car, a house, or anything else, they have a right to be treated fairly and without regard to their race,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The U.S. Department of Justice will not tolerate anyone who discriminates against people because of their race in deciding whether, and under what conditions, to lend them money. Our common humanity, our nation’s sense of decency, and federal law make this kind of race discrimination both un-American and illegal. Today’s settlement should send a clear message that car dealerships and other lenders must never make credit decisions based on a customer’s race. By entering into this agreement, the defendants have committed to take the steps necessary to ensure that they will provide equal treatment for borrowers of all races.”

This lawsuit, filed in September 2019, was based on the results of testing conducted by the department’s Fair Housing Testing Program, in which individuals pose as prospective car buyers to gather information about possible discriminatory practices. The complaint alleged that employees of Guaranteed Auto Sales told African American testers that they needed larger down payments than white testers for the same used cars, and told African American testers that they were required to fund their down payments in one lump sum, while they gave white testers an option of paying in two installments.

The federal Equal Credit Opportunity Act prohibits lending discrimination based on race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act. The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing.

The Justice Department announced today the filing of civil forfeiture complaints seeking the forfeiture and recovery of approximately $96 million in assets allegedly associated with an international conspiracy to launder funds misappropriated from 1Malaysia Development Berhad (1MDB), a Malaysian sovereign wealth fund.  Combined with earlier civil forfeiture complaints filed beginning in July 2016, the United States has sought the forfeiture of more than $1.8 billion in assets traceable to funds embezzled from 1MDB.  To date, as a result of these actions, the United States has recovered or assisted Malaysia in recovering nearly $1.1 billion in assets associated with the 1MDB international money laundering and bribery scheme.  This case represents the largest action brought under the department’s Kleptocracy Asset Recovery Initiative as well as the largest civil forfeiture action in the Justice Department’s history.

The complaints filed today in the Central District of California identify additional assets traceable to the 2012 and 2013 bond offerings.  These assets include luxury real estate in Paris, artwork by Claude Monet and Andy Warhol, and accounts maintained at financial institutions in Luxembourg and Switzerland.    

According to the complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates.  1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people. 

“The complaint filed today seeks to forfeit a range of luxury items — including real estate in Paris, artwork by Monet, Warhol, and Basquiat, and international bank accounts — all of which were allegedly acquired with funds stolen from Malaysia’s sovereign wealth fund,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “Today’s action is just the latest demonstration of the Criminal Division’s longstanding commitment to tracing, seizing, and forfeiting assets acquired through grand corruption and, wherever possible, returning those assets to the people from whom they were stolen.”  

“The FBI will relentlessly pursue international corruption investigations,” said FBI Assistant Director Calvin Shivers of the Criminal Investigative Division.  “As efforts in this case have shown, our dedicated investigators will pursue corruption, uncover proceeds of illicit activity, and return ill-gotten gains to the rightful owners.  In this case, to the people of Malaysia.”

“These seemingly endless civil forfeiture complaints associated with the 1MDB scandal are representative of the seemingly endless schemes used to hide and launder money as part of the sophisticated efforts to steal from the Malaysian people,” said Don Fort, Chief, IRS Criminal Investigation.  “This latest civil forfeiture complaint would return an extraordinary sum of money to the people of Malaysia where it belongs and where it can finally be used for its original intended purpose - to improve the lives of everyday Malaysians.”

As alleged in the complaints, the members of the conspiracy – which included officials at 1MDB, their relatives and other associates – diverted more than $4.5 billion in 1MDB funds.  Using fraudulent documents and representations, the co-conspirators allegedly laundered the funds through a series of complex transactions and shell companies with bank accounts located in the United States and abroad.  These transactions allegedly served to conceal the origin, source and ownership of the funds, and ultimately passed through U.S. financial institutions to then be used to acquire and invest in assets located in the United States and overseas.

As alleged in the earlier complaints, in 2009, 1MDB officials and their associates embezzled approximately $1 billion that was supposed to be invested to exploit energy concessions purportedly owned by a foreign partner.  Instead, the funds were allegedly transferred through shell companies and were used to acquire a number of assets, as set forth in the complaints.  The complaints also allege that the co-conspirators misappropriated close to $1.4 billion in funds raised through bond offerings in 2012, and more than $1.2 billion following another bond offering in 2013.  The complaints also allege that in 2014, the co-conspirators misappropriated approximately $850 million in 1MDB funds under the guise of repurchasing certain options that had been given in connection with a guarantee of the 2012 bonds.

The FBI’s International Corruption Squads in New York City and Los Angeles and the IRS-CI are investigating the case.  Deputy Chief Woo S. Lee and Trial Attorneys Barbara Levy and Joshua L. Sohn of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.  Assistant U.S. Attorneys John Kucera and Michael Sew-Hoy of the U.S. Attorney’s Office for the Central District of California provided substantial assistance.  The trial team also expresses its gratitude and appreciation to the Criminal Division’s Office of International Affairs for their continued assistance in this matter.

The department also expresses its deep appreciation for the significant assistance provided by the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, and the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, and the Malaysian Anti-Corruption Commission.

The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office.  In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption.  Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov (link sends e-mail) or https://tips.fbi.gov/.

A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime.  These allegations are not proven until a court awards judgment in favor of the United States.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Attorney General William P. Barr has issued the following statement:

“I commend Police Chief Carmen Best for her courage and leadership in restoring the rule of law in Seattle.  For the past several weeks, the Capitol Hill area of Seattle was occupied by protesters who denied access to police and other law enforcement personnel.  Unsurprisingly, the area became a haven for violent crime, including shootings that claimed the lives of two young people, assaults, and robberies.  As Chief Best made clear throughout the process, there is a fundamental distinction between discussion of substantive issues — including addressing distrust of law enforcement by many in the African-American community — and violent defiance of the law.  Chief Best has rightly committed to continue the substantive discussion while ending the violence, which threatens innocent people and undermines the very rule-of-law principles that the protesters profess to defend.  Thanks to the Seattle Police Department, Capitol Hill parks, streets, and businesses are again accessible to the people of Seattle, who may travel throughout their city without fear of violence.  The people of Seattle should be grateful to Chief Best and her Department for their professional and steadfast defense of the rule of law.  The message of today’s action is simple but significant:  the Constitution protects the right to speak and assemble freely, but it provides no right to commit violence or defy the law, and such conduct has no place in a free society governed by law.”

T-Mobile US Inc. (T-Mobile) and Dish Network Corporation (Dish) announced today that they closed T-Mobile’s divestiture of Boost Network (Boost) to Dish.  Boost was legacy Sprint Corporation’s prepaid wireless brand, and the transaction was completed pursuant to the remedies imposed by the Department of Justice and the Federal Communications Commission.

“I congratulate T-Mobile and Dish for closing the Boost divestiture as required under the Final Judgment,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.  “This deal is a significant milestone in realizing the Department of Justice’s remedy, which is designed to strengthen competition for high-quality 5G networks and benefit American consumers nationwide.”

The Antitrust Division filed a civil antitrust lawsuit on July 26, 2019, in the U.S. District Court for the District of Columbia along with the settlement that resolves the department’s competitive concerns.  Judge Kelly entered final judgment in that matter on April 1, 2020.  The attorneys general for the states of Arkansas, Colorado, Florida, Kansas, Louisiana, Nebraska, Ohio, Oklahoma, South Dakota, and Texas each joined in this settlement.  Separately, Judge Marrero in the Southern District of New York denied the request of a minority group of states to enjoin the transaction nationwide.  Judge Marrero’s opinion relied, in part, on the federal remedies designed to protect against the competitive harms that may otherwise have occurred.

The FCC also approved the transaction after a thorough examination, with certain commitments as a condition of approval.

T-Mobile US Inc. is a Delaware corporation headquartered in Bellevue, Washington.  In 2019, T-Mobile posted revenues of $45 billion.  Deutsche Telekom AG, a German corporation headquartered in Bonn, Germany, is the controlling shareholder of T-Mobile US Inc.

 In continued effort to fight fraud connected to the COVID-19 pandemic, the Department of Justice, the Department of Health and Human Services, and the Federal Trade Commission are partnering to alert the public of emerging threats to steal money and sensitive information through contact tracing scams. Contact tracing is a process underway to identify people who have come in contact with someone who has tested positive for COVID-19, instruct them to quarantine, and monitor their symptoms. Contact tracing scams often appear in the form of text messages or telephone calls seeking money, or Social Security, bank account, or credit card numbers, along with other sensitive information not required for authentic contact tracing.

“As cities and states start to reopen for business and implement contact tracing measures in their reopening plans, the Department of Justice remains committed to preventing, prosecuting, and punishing rogue actors who seek to exploit these safety efforts and who attempt to steal money and sensitive information from citizens,” said Deputy Attorney General Jeffrey A. Rosen.

 “COVID-19 fraud is rapidly evolving. Operating contact tracing schemes is just one method that criminals use to target unsuspecting patients nationwide, attempting to steal their personal information and commit healthcare fraud,” said Health and Human Services Deputy Inspector General for Investigations Gary Cantrell. “We continue to work with our law enforcement partners to investigate and bring to justice those who exploit the ongoing public health crisis in order to enrich themselves.”

“You may receive a call, email, text or visit from a contact tracer, and you should not hesitate to talk with them,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “But, beware if they ask you for money, bank account information, your Social Security number, or to click on a link, as those are sure signs of a scam.”

Contact tracing systems rely on people voluntarily communicating with and giving information to state health departments. The goal of contact tracing is to identify those who have been in contact with individuals that have tested positive for COVID-19 and to alert them that they may have been exposed. Contact tracers are usually hired by a state’s department of public health. They work with an infected person to get the names and phone numbers for everyone that infected person came in close contact with while possibly infectious.

Depending on the state, a person who had contact with someone infected with COVID-19 will either get a telephone call or a text message from the health department indicating that the person will be receiving a telephone call from a specific number. State health departments will not text individuals asking them to call a telephone number or to click a link.

Fraudsters, seeking to take advantage of the COVID-19 pandemic, are attempting to exploit contact tracing to steal both money and personal information. Scammers may offer fake contact tracing jobs to collect both Social Security numbers and fees. They also may send text messages or emails with fake links, or call people pretending to be contact tracers. Their goal is to get money, Social Security numbers, or other sensitive information not required for authentic contact tracing. Clicking on a link in the text message or email will download malware onto your device, giving scammers access to your personal and financial information. Ignore and delete these scam messages. Remember, real contact tracers will never ask for a Social Security number, bank account number, or credit card number, and will never ask for payment. For specifics about contact tracing in your area, check with your state government

The Justice Department, HHS and FTC encourage anyone who has spotted a contact tracing scam or any fraud connected to COVID-19 to report it to the National Center for Disaster Fraud at 866-720-5721 or online at www.Justice.gov/DisasterComplaintForm or ftc.gov/complaint.

For more information on how to identify and report COVID-19 health care related scams, visit the OIG COVID-19 Portal at www.OIG.HHS.gov.  

For more information about COVID-19 contact tracing scams and tips to protect yourself from identity theft and financial fraud, visit the Federal Trade Commission at: https://www.consumer.ftc.gov/blog/2020/05/covid-19-contact-tracing-text-message-scams.

Assistant Attorney General for the Civil Rights Division Eric Dreiband reiterated today that cards and other documents bearing the Department of Justice seal and claiming that individuals are exempt from face mask requirements are fraudulent.

Inaccurate flyers or other postings have been circulating on the web and via social media channels regarding the use of face masks and the Americans with Disabilities Act (ADA) due to the COVID-19 pandemic. Many of these notices included use of the Department of Justice seal and ADA phone number.

As the Department has stated in a previous alert, the Department did not issue and does not endorse them in any way. The public should not rely on the information contained in these postings.

The ADA does not provide a blanket exemption to people with disabilities from complying with legitimate safety requirements necessary for safe operations.
The public can visit ADA.gov or call the ADA Information Line at 800-514-0301 (voice) and 800-514-0383 (TTY) for more information.

The chief executive officer of Indivior PLC, Shaun Thaxter, pleaded guilty today in federal court in Abingdon, Virginia to a one-count information charging him with causing the introduction into interstate commerce of the opioid drug Suboxone Film, which was misbranded in violation of the Federal Food, Drug, and Cosmetic Act. 

Thaxter served as Indivior’s top executive since 2009 (including the time period prior to December 2014 when Indivior was known as Reckitt Benckiser Pharmaceuticals).  Indivior announced yesterday that Thaxter is stepping down as chief executive officer.  When Indivior was known as Reckitt Benckiser Pharmaceuticals it was  a subsidiary of British conglomerate Reckitt Benckiser Group (RB Group).  RB Group paid $1.4 billion in 2019 to resolve its liability to the United States and various states related to the marketing of Suboxone.

Suboxone Film is a drug product approved for use by recovering opioid addicts to avoid or reduce withdrawal symptoms while they undergo treatment. Suboxone and its active ingredient, buprenorphine, are powerful and addictive opioids.  Thaxter was charged in connection with  Indivior’s misrepresentations to a state Medicaid program regarding the safety of Suboxone Film. 

“Our nation is confronting the deadliest drug crisis in American history. Opioid withdrawal is dangerous, difficult, and painful, and the people struggling to overcome addiction face challenges that can often seem insurmountable,” said Deputy Assistant Attorney General Michael D. Granston of the Department of Justice’s Civil Division.  “Opioid manufacturers, and the individuals charged with managing them, are obligated to ensure the opioid drugs they sell are marketed and distributed honestly, responsibly, and in compliance with the law.”

“The public must be able to trust pharmaceutical manufacturers and their executives—particularly when they are marketing powerful opioids,” said First Assistant U.S. Attorney Daniel P. Bubar of the Western District of Virginia.  “While he was the top executive of Indivior, Shaun Thaxter violated that trust, and must be held accountable.  I am very proud of the continued partnership between our office and the Virginia Medicaid Fraud Control Unit, FDA, HHS, and the U.S. Postal Service.”

According to the criminal information filed in court today, Thaxter had authority over Indivior’s marketing and sales of Suboxone Film which, along with other Suboxone products, generated substantially all of the company’s revenue.  In 2012, Thaxter oversaw and encouraged Indivior’s efforts to secure formulary coverage for Suboxone Film from the Massachusetts Medicaid agency called MassHealth.  Thaxter asked Indivior employees under his direction to devise a strategy to win preferred drug status for Suboxone Film and counteract a non-opioid competitor MassHealth was considering for opioid-addiction treatment.  Certain Indivior employees subsequently shared false and misleading safety information with MassHealth officials about Suboxone Film’s risk of accidental pediatric exposure.  Two months after receiving that false and misleading information, MassHealth announced it would provide access to Suboxone Film for Medicaid patients with children under the age of six.

Thaxter pleaded guilty to a misdemeanor count of violating the Federal Food, Drug, and Cosmetic Act by causing the distribution of misbranded Suboxone Film in interstate commerce.  Under the terms of the plea agreement filed today, Thaxter has agreed to pay $600,000 in fines and forfeiture and faces up to one year in prison.  Thaxter will be sentenced on Sept. 29, 2020,  by U.S. District Court Judge James P. Jones in Abingdon, Virginia.

“Opioid addiction and abuse is an immense public health crisis and taking steps to address it is one of the FDA’s highest priorities,” said FDA Commissioner Stephen M. Hahn, M.D. “Providing misleading information about relative product benefits could undermine efforts to provide affordable treatment to those suffering from this crisis.  We will continue to work with the Department of Justice to investigate and hold accountable those who devise and participate in schemes to the detriment of the public health.”

On April 9, 2019, a federal grand jury sitting in Abingdon, Virginia, indicted Indivior for allegedly engaging in an illicit nationwide scheme to increase prescriptions of Suboxone.  The United States’ criminal trial against Indivior is scheduled to begin on September 28, 2020, in the U.S. District Court in Abingdon, Virginia.  Indivior is presumed innocent until proven guilty.

The criminal cases against Thaxter and Indivior are being prosecuted by attorneys from the U.S. Attorney’s Office for the Western District of Virginia and the Department of Justice’s Civil Division, including Albert P. Mayer, Randy Ramseyer, Kristin L. Gray, Joseph S. Hall, Janine M. Myatt, Garth W. Huston, Carol Wallack, Charles J. Biro, and Matthew J. Lash.  The criminal investigation of Thaxter was handled by the FDA’s Office of Criminal Investigations; the Virginia Medicaid Fraud Control Unit; the United States Postal Service - Office of Inspector General; and the U.S. Department of Health and Human Services - Office of Inspector General.  Assistance was provided by representatives of the FDA’s Office of Chief Counsel.

          Two owners of Guam Medical Transport (GMT) were sentenced to prison terms today for their roles in a health care fraud and money laundering scheme that resulted in a loss to the United States of approximately $10.8 million, one of the largest single Medicare ambulance fraud cases ever prosecuted by the Justice Department. 

          Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Shawn N. Anderson of the Districts of Guam and the Northern Mariana Islands, Special Agent in Charge Eli S. Miranda of the FBI’s Honolulu Field Office, Special Agent in Charge Justin Campbell of IRS Criminal Investigation (IRS-CI) Seattle Field Office and Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Los Angeles Regional Office made the announcement.

          U.S. District Judge Frances Tydingco-Gatewood of the District of Guam sentenced Clifford P. Shoemake, 63, of Guam, and Kimberly Clyde “Casey” Conner, 60, of Saipan, to serve 71 and 63 months, respectively, in federal prison in connection with their Oct. 29, 2019, guilty pleas to one count of conspiracy to commit health care fraud and one count of conspiracy to engage in monetary transactions with the proceeds of specified unlawful activity.  Judge Tydingco-Gatewood also ordered the defendants to pay $10,884,964.49 in restitution and to forfeit the same amount.

          Medicare and TRICARE are federal health benefit programs which, under certain specified conditions, reimburse providers for medically necessary, non-emergency, scheduled ambulance transportation to and from dialysis treatments, provided to beneficiaries with end stage renal disease (ESRD).  Ambulance services are medically necessary when provided to such beneficiaries who cannot be transported by any other means without endangering their health, or were bed confined before, during and after the transportation.

          According to their admissions at the plea hearing, from approximately March 11, 2010, to approximately March 21, 2014, the defendants engaged in a conspiracy to defraud Medicare and TRICARE by submitting claims for reimbursement for medically unnecessary ambulance services that GMT provided to patients with ESRD.  The defendants admitted they were aware that GMT was transporting patients who did not qualify for ambulance transportation under applicable Medicare and TRICARE regulations and guidelines, with which they had failed to familiarize themselves.  Specifically, the defendants admitted they were aware that many of GMT’s patients were not bed-confined, and did not have acute medical conditions that would otherwise qualify them for ambulance transportation. 

          As part of the scheme, the defendants directed GMT employees to remove from internal documents references to GMT patients’ ability to walk because they knew that Medicare and TRICARE would not provide reimbursement for the patients.  The defendants further admitted they were aware of, but failed to address, concerns about GMT’s Medicare and TRICARE billing practices raised by other GMT employees.  According to court documents, GMT submitted claims to Medicare totaling approximately $32 million during the course of the scheme.  The conspiracy resulted in improper payments to GMT of approximately $10.8 million, the defendants admitted. 

          The defendants further admitted to conspiring to engage in money transactions involving the proceeds of their health care fraud scheme.  Specifically, they admitted that they used the proceeds of their health care fraud scheme to pay for personal expenses, such as vacations, personal income taxes, a personal residence and other items.  They then caused these expenses to be falsely categorized as business expenses of GMT, thereby improperly reducing GMT’s taxable income and GMT’s corresponding tax liability, they admitted.

          This case was investigated by the FBI, IRS and HHS-OIG.  Senior Litigation Counsel John A. Michelich and Trial Attorney Michael McCarthy of the Criminal Division’s Fraud Section and First Assistant U.S. Attorney Marivic David of the District of Guam and the Northern Mariana Islands prosecuted the case. 

          The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

          The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Two owners of Guam Medical Transport (GMT) were sentenced to prison terms today for their roles in a health care fraud and money laundering scheme that resulted in a loss to the United States of approximately $10.8 million, one of the largest single Medicare ambulance fraud cases ever prosecuted by the Justice Department. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Shawn N. Anderson of the Districts of Guam and the Northern Mariana Islands, Special Agent in Charge Eli S. Miranda of the FBI’s Honolulu Field Office, Special Agent in Charge Justin Campbell of IRS Criminal Investigation (IRS-CI) Seattle Field Office and Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Los Angeles Regional Office made the announcement.

U.S. District Judge Frances Tydingco-Gatewood of the District of Guam sentenced Clifford P. Shoemake, 63, of Guam, and Kimberly Clyde “Casey” Conner, 60, of Saipan, to serve 71 and 63 months, respectively, in federal prison in connection with their Oct. 29, 2019, guilty pleas to one count of conspiracy to commit health care fraud and one count of conspiracy to engage in monetary transactions with the proceeds of specified unlawful activity.  Judge Tydingco-Gatewood also ordered the defendants to pay $10,884,964.49 in restitution and to forfeit the same amount.

Medicare and TRICARE are federal health benefit programs which, under certain specified conditions, reimburse providers for medically necessary, non-emergency, scheduled ambulance transportation to and from dialysis treatments, provided to beneficiaries with end stage renal disease (ESRD).  Ambulance services are medically necessary when provided to such beneficiaries who cannot be transported by any other means without endangering their health, or were bed confined before, during and after the transportation.

According to their admissions at the plea hearing, from approximately March 11, 2010, to approximately March 21, 2014, the defendants engaged in a conspiracy to defraud Medicare and TRICARE by submitting claims for reimbursement for medically unnecessary ambulance services that GMT provided to patients with ESRD.  The defendants admitted they were aware that GMT was transporting patients who did not qualify for ambulance transportation under applicable Medicare and TRICARE regulations and guidelines, with which they had failed to familiarize themselves.  Specifically, the defendants admitted they were aware that many of GMT’s patients were not bed-confined, and did not have acute medical conditions that would otherwise qualify them for ambulance transportation. 

As part of the scheme, the defendants directed GMT employees to remove from internal documents references to GMT patients’ ability to walk because they knew that Medicare and TRICARE would not provide reimbursement for the patients.  The defendants further admitted they were aware of, but failed to address, concerns about GMT’s Medicare and TRICARE billing practices raised by other GMT employees.  According to court documents, GMT submitted claims to Medicare totaling approximately $32 million during the course of the scheme.  The conspiracy resulted in improper payments to GMT of approximately $10.8 million, the defendants admitted. 

The defendants further admitted to conspiring to engage in money transactions involving the proceeds of their health care fraud scheme.  Specifically, they admitted that they used the proceeds of their health care fraud scheme to pay for personal expenses, such as vacations, personal income taxes, a personal residence and other items.  They then caused these expenses to be falsely categorized as business expenses of GMT, thereby improperly reducing GMT’s taxable income and GMT’s corresponding tax liability, they admitted.

This case was investigated by the FBI, IRS and HHS-OIG.  Senior Litigation Counsel John A. Michelich and Trial Attorney Michael McCarthy of the Criminal Division’s Fraud Section and First Assistant U.S. Attorney Marivic David of the District of Guam and the Northern Mariana Islands prosecuted the case. 

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Glenmark Pharmaceuticals Inc., USA was charged for conspiring to fix prices for generic drugs, the Department of Justice announced today.

The charge, filed today in the U.S. District Court in Philadelphia, Pennsylvania, alleges that Glenmark conspired with other generic drug companies, including a company with its principal place of business in Montgomery County, Pennsylvania, and Apotex Corp., to increase and maintain prices of pravastatin and other generic drugs beginning in or around May 2013 and continuing until at least in or around December 2015.  Pravastatin is a prescription medication that reduces cholesterol, helping to prevent heart attacks and strokes.  The charge alleges that the gain to the conspirators, and the loss to the victims, was at least $200 million.

“By cheating through fixing prices, generic drug companies artificially raised prices even though prescription drug costs were already sky high,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.  “As today’s charge shows, the Antitrust Division will not hesitate to charge these companies, and litigate where necessary, particularly where their crimes resulted in hundreds of millions of dollars in overcharges for life-saving medications.”

“During these difficult times, it is more important than ever that our pharmaceutical companies conduct business with the well-being of the consumer in mind,” said Deputy Special Agent in Charge Steven Stuller, U.S. Postal Service Office of Inspector General.  “When generic drug companies conspire to artificially increase prices, they do so to the detriment of many who depend on these medications to maintain good health.  Along with the Department of Justice Antitrust Division and our partners at the Federal Bureau of Investigation, the USPS Office of Inspector General will remain committed to investigating those who would engage in this type of harmful conduct.”

“The FBI will continue to work closely with our partners to pursue companies and individuals who seek to manipulate the economic system to their benefit,” said Timothy R. Slater, Assistant Director in Charge of the FBI Washington Field Office.  “Today's charge demonstrates the FBI's ongoing commitment to rooting out this greed and illegal activity.  There are real victims in these crimes; they are the patients around the country who rely on these vital medications.”

“Artificially inflating the price of medication is reprehensible and illegal,” said Jennifer Arbittier Williams, First Assistant U.S. Attorney for the Eastern District of Pennsylvania.  “This ill-gotten gain by the pharmaceutical industry potentially put the health of millions of Americans at risk.  Just as with the other charges that have been brought out of this investigation into generic pharmaceuticals, today’s announcement demonstrates that we will continue to hold accountable any company that engages in this type of conduct.”

Glenmark is the fifth company to be charged over the last 13 months in connection with antitrust violations in the generic pharmaceutical industry.  The previous corporate charges, including the charge against Glenmark’s co-conspirator Apotex, were resolved by deferred prosecution agreement.  Four senior executives have also been charged.  Three entered guilty pleas and the fourth is awaiting trial.

A criminal Information merely alleges that a crime has been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.

The offense charged carries a statutory maximum penalty of $100 million, which may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $100 million.

This charge is the result of an ongoing federal antitrust investigation into market allocation, price fixing, bid rigging, and other anticompetitive conduct in the generic pharmaceutical industry, which is being conducted by the Antitrust Division with the assistance of the United States Postal Service Office of Inspector General, the Federal Bureau of Investigation’s Washington and Philadelphia Field Offices, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania.  Anyone with information on market allocation, price fixing, bid rigging, or other anticompetitive conduct related to the generic pharmaceutical industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.

The Department of Justice and Federal Trade Commission issued today new Vertical Merger Guidelines that outline how the federal antitrust agencies evaluate the likely competitive impact of mergers and whether those mergers comply with U.S. antitrust law. These new Vertical Merger Guidelines mark the first time the Department and the FTC have issued joint guidelines on vertical mergers, and represent the first major revision to guidance on vertical mergers since the Department’s 1984 Non-Horizontal Merger Guidelines, which the Department withdrew in January of this year.

In March 2019, Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division announced that a draft of new vertical merger guidelines was underway, following an FTC workshop in Fall 2018 on whether new vertical merger guidelines should be issued.

“As a joint effort of DOJ and the FTC, the new vertical merger guidelines will provide greater transparency and predictability to the marketplace when businesses combine at different levels of the supply chain," said Deputy Attorney General Jeff Rosen.

 “These new Vertical Merger Guidelines provide transparency in the important area of vertical merger analysis,” said Assistant Attorney General Delrahim. “They explain our investigative practices as we apply them today and have applied them in recent years.  The guidelines will give greater predictability and clarity to the business community, the bar, and enforcers. I am grateful for the commitment, thoroughness, and dedication with which staff from both agencies worked on this project. This has been a successful process because of our robust public engagement and our excellent collaborative relationship with the FTC.”

“These new Vertical Merger Guidelines are an important step forward in maintaining vigorous antitrust enforcement, and reaffirm our commitment to challenge vertical mergers that are anticompetitive and would harm American consumers,” said FTC Chairman Joe Simons. “The new guidelines reflect our current enforcement approach and, through increased transparency, will help businesses and practitioners understand how we evaluate vertical transactions. The new Guidelines also reflect our strong collaboration with the Department of Justice, and the substantial input that we received from the public.”

Vertical mergers combine two or more companies that operate at different levels in the same supply chain. A primary goal of the new Vertical Merger Guidelines is to help the agencies identify and challenge competitively harmful mergers while avoiding unnecessary interference with mergers that either are competitively beneficial or likely will have no competitive impact on the marketplace. To accomplish this, the guidelines detail the techniques and main types of evidence the agencies typically use to predict whether vertical mergers may substantially lessen competition. The Guidelines will help businesses, antitrust practitioners and other interested persons by increasing transparency into the agencies’ principal analytical techniques, practices, and enforcement policies for evaluating vertical transactions.

The new Vertical Merger Guidelines reflect the agencies’ analysis of vertical mergers. The revised guidelines:

• Explain that mergers often present both horizontal and vertical elements, and the agencies may apply both the Horizontal Merger Guidelines and the Vertical Merger Guidelines in their evaluation of a transaction, as part of a fact-specific process that involves a variety of tools to determine whether a merger may substantially lessen competition.
• Clarify that its analytical techniques, practices, and enforcement policies apply to a range of non-horizontal transactions, including strictly vertical mergers, “diagonal” mergers, and vertical issues that can arise in mergers of complement.
• Clarify that when the agencies identify a potential competitive concern in a relevant market, they will also specify one or more related products. A related product is a product or service that is supplied or controlled by the merged firm and is positioned vertically or is complementary to the products and services in the relevant market.
• Provide detailed discussions, including multiple diverse examples, of the “raising rivals’ costs” and “foreclosure” theories of harm. In recent decades, these theories of harm have been the principle theories investigated in merger reviews.
• Identify conditions under which a vertical merger would not require an extensive investigation, because the merger does not create or enhance the merged firm’s incentive or ability to harm rivals.
• Emphasize that analyzing efficiencies is an important part of reviewing vertical mergers.
• Explain in detail the analysis of the elimination of double marginalization (“EDM”), which economists emphasize is a frequent procompetitive result of vertical transactions.

The new guidelines are the culmination of a process that dates back to the start of the FTC’s Hearings on Competition and Consumer Protection in the 21st Century in June 2018.  In June 2018, and then again in the October 2018, the Commission sought comment on the legal and economic analysis of vertical mergers, and whether new Vertical Merger Guidelines should be issued by the antitrust agencies.  In November 2018, the Commission held a public hearing to discuss the proper scope of new guidelines. In the spring of 2019, both agencies began working on revisions to the 1984 Non-Horizontal Merger Guidelines, and began sharing drafts of proposed new guidelines in the summer of 2019. On January 10, 2020, the agencies jointly released a draft version of the Vertical Merger Guidelines; the agencies received 74 substantive comments on the draft. A public workshop to discuss the draft was held on March 11, 2020 during which staff from both agencies moderated debate and discussion on the draft Vertical Merger Guidelines. The guidelines released today modify the draft released in January to incorporate comments from the public.

Attorney General William P. Barr has released the following statement:

“We are pleased with the Supreme Court’s decision today in Espinoza v. Montana Department of Revenue.  Montana’s Blaine Amendment excluded religious schools from state scholarship programs that are open to other educational institutions.  It thus prevented parents who send their children to religious schools from receiving scholarship funds that are available to the rest of the community.

The Supreme Court concluded today that Montana’s Blaine Amendment violates the Free Exercise Clause of the First Amendment.  The Court recognized that the Free Exercise Clause “condemns discrimination against religious schools and the families whose children attend them.”  As a result of the Court’s decision, a state may no longer disqualify religious schools from scholarships or other programs “solely because they are religious.”  

The Court’s decision represents an important victory for religious liberty and religious equality in the United States.  As the Court explained, religious people are “members of the community too,” and their exclusion from public programs because of their religion is “odious to our Constitution” and “cannot stand.”  We were pleased to see the Court agree with the Trump Administration that such blatant discrimination against religion has no place in our constitutional system.”

Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division recently announced his departure from the Department, effective July 3, 2020.

“Jody has served the Department of Justice with honor and distinction for over two decades,” said Attorney General William P. Barr.  “Under his direction as Assistant Attorney General for these past two years, the Civil Division has vigorously defended the Administration’s most important policies and achieved many successes, from regaining billions of dollars from those who sought to defraud our government, to protecting our nation’s seniors by bringing to justice those who sought to abuse and exploit them.  On behalf of the Department, I want to thank him for his dedication to the rule of law and his service to the Department and our nation.”

“Having spent more than two decades of my professional career at the Department of Justice, I have a deep and abiding respect for those who have devoted their careers to public service,” said Assistant Attorney General Jody Hunt.  “I have had the wonderful privilege of working alongside the many talented public servants of the Civil Division, and have witnessed firsthand their dedication and commitment to the values and principles for which this Department stands.  I am grateful for the opportunity to have led the Civil Division as Assistant Attorney General, and in that role to have helped support and defend the interests of the Executive Branch.  I am confident that the Civil Division will continue its outstanding work on behalf of the Government going forward.” 

Under Assistant Attorney General Hunt’s leadership, the Civil Division defended many of the Administration’s most important policies and priorities, including suits concerning the Emoluments Clauses and challenges to the President’s Executive Orders, such as the travel proclamation and the border wall emergency declaration.  The Civil Division also successfully opposed suits against numerous immigration-related policies, including the migrant protection protocols, the third-country asylum rule, and the public charge rule.  In combatting the opioid epidemic, the Civil Division helped to secure a $1.4 billion settlement in July 2019 from a pharmaceutical company, the largest recovery in history in a case involving an opioid manufacturer. 

Under Mr. Hunt’s leadership, the Civil Division also prioritized protecting American seniors, announcing in early 2020, the largest-ever sweep of elder fraud cases in Department history, charging more than 400 defendants with causing over $1 billion in victim losses and surpassing the record-setting 2019 elder fraud sweep.  Similarly, in September 2019, a pharmaceutical company agreed to pay $95.9 million to resolve allegations that it paid kickbacks and engaged in false and misleading marketing of its drug to induce providers in long term care facilities, including nursing homes, to prescribe it for behaviors commonly associated with dementia patients, which was not an approved use.  More recently, under Mr. Hunt’s leadership, the Civil Division announced first of a kind civil actions against those responsible for fraudulent robocalls. 

Beyond vigorously pursuing and defending the Administration’s policies and priorities, during Mr. Hunt’s time as Assistant Attorney General, the Civil Division protected the public fisc in suits seeking monetary relief on behalf of the government and its officials.  This included prioritizing enforcement of the False Claims Act, the government’s primary civil tool for protecting taxpayer funds against fraud.  In each of the last two years, the government recovered approximately $3 billion under the act.  At the same time, the Civil Division increased the use of its authority to dismiss unwarranted qui tam actions.  In this area, Mr. Hunt developed guidelines to help ensure transparency and consistency in the Department’s evaluation of the credit to award defendants who cooperate in False Claims Act cases. 

Mr. Hunt also prioritized bringing justice to terrorists, war criminals, sex offenders, and other fraudsters who illegally obtained naturalization.  As just one example, the Civil Division succeeded in securing the civil denaturalization of an individual convicted of terrorism offenses in Egypt who admitted recruiting for al Qaeda within the United States and running a communications hub in California for the Egyptian Islamic Jihad terrorist organization.  Due to enormous successes in this area and growing referrals from law enforcement agencies, Mr. Hunt spearheaded the creation of a new section within the Civil Division’s Office of Immigration Litigation – the Denaturalization Section – dedicated to investigating and litigating revocation of naturalization.

The Department of Justice thanks Assistant Attorney General Hunt for his leadership and for his 21 years of service to the Department and our nation.

On June 17 and 18, 2020, United States Attorney General William P. Barr and United States Acting Deputy Secretary of Homeland Security Ken Cuccinnelli joined ministers from the ‘Five Eyes’ partnership for a virtual meeting to agree joint action to tackle emerging security threats during the coronavirus (COVID-19) pandemic.

This final communiqué was published following the meeting:

BEGIN TEXT:

We, the Home Affairs, Interior, and Security Ministers of Australia, Canada, New Zealand, the United Kingdom and the United States of America (the ‘Five Countries’) have met via video conference on June 17 and 18, 2020. Guided by our shared responsibility and commitment to build a more peaceful and secure world for our citizens, we discussed the challenges and implications of the COVID-19 pandemic for our security and reconfirmed our determination to protect our nations from these threats.

The COVID-19 pandemic has seen a change in state based and non-state activity as new opportunities to interfere in our societies and commit crime have emerged. Our law enforcement and security agencies have been agile in responding to these threats. As many of these threats cross borders, we discussed how we can redouble our efforts to respond to these challenges.

With many of our citizens staying at home during the pandemic and relying on the internet to conduct business, learn, and socialize, criminals and hostile actors are exploiting this increased online activity as an opportunity to conduct criminal activity, and capitalizing on anxieties about the pandemic. This sort of malicious activity on the internet is unacceptable. We agreed to share information and develop joint assessments on these threats and explore ways to strengthen our collective responses. We will work with all partners to promote the framework of responsible state behavior in cyberspace and uphold the role of all States to help counter irresponsible activity being carried out by criminal groups in their countries.

The COVID-19 pandemic has also exacerbated the terrible reality that, as children increasingly use the internet for education, socializing, and entertainment, they are at higher risk of online child sexual exploitation and abuse. We agreed to exchange information on this issue in light of COVID-19, and share lessons in order to continue to strengthen our fight against those who seek to exploit children. We call on the digital industry to take immediate, tangible action to implement the Voluntary Principles to Counter Online Child Sexual Exploitation and Abuse, launched in March 2020.

Finally, we discussed the vital importance of collaboration between governments and the digital industry to address concerns with end-to-end encryption where it impacts public safety and the lawful access to information necessary to prevent or investigate serious crimes. We continue to urge technology companies to make real progress on this issue and work with governments in a meaningful way to resolve this challenge in ways that protect our citizens. We will continue to work with like-minded international partners and institutions to ensure complementary approaches to this issue.

We reaffirmed our commitment to keep working together and look forward to meeting face to face when it is safe to do so. Until then, we will continue to meet virtually to advance cooperation among our nations on security, border and migration issues that ensure the public continue to be protected.

Assistant Attorney General Eric Dreiband of the Civil Rights Division issued the following statement in response to the federal court ruling today regarding religious liberty in New York City and New York State:

"Today’s federal court decision is a win for religious freedom and the civil liberties of New Yorkers. Government cannot discriminate by protecting free speech and the right to assemble while threatening or limiting religious exercise – it must protect all rights guaranteed under the First Amendment. The court’s decision is consistent with positions and arguments made by the United States Department of Justice in similar filings and letters, including in New York City and elsewhere around the country. The Department of Justice will continue to support people of faith who seek equal treatment against threats and actions by public officials who discriminate against them because of their religion. The Constitution and our oath to defend and protect it require nothing less."

The federal case is Soos et al., v. Cuomo et al., No. 1:20-cv-651 (N.D.N.Y).

The court opinion can be found here https://www.thomasmoresociety.org/wp-content/uploads/2020/06/Dist.-Ct.-Memo-and-Order-June-26-2020.pdf. The department's previous statement on religious concerns in New York City can be found here https://www.justice.gov/opa/pr/statement-assistant-attorney-general-eric-dreiband-and-us-attorney-matthew-schneider-new-york. 

One of the leaders of the Infraud Organization pleaded guilty today to RICO conspiracy.  Infraud was an Internet-based cybercriminal enterprise engaged in the large-scale acquisition, sale, and dissemination of stolen identities, compromised debit and credit cards, personally identifiable information, financial and banking information, computer malware, and other contraband. Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division made the announcement.

Sergey Medvedev, aka “Stells,” “segmed,” “serjbear,” 33, of the Russian Federation, pleaded guilty before U.S. District Court Judge James C. Mahan in the District of Nevada.  According to the indictment, the Infraud Organization was created in October 2010 by Svyatoslav Bondarenko aka “Obnon,” “Rector,” and “Helkern,” 34, of Ukraine, to promote and grow interest in the Infraud Organization as the premier destination for “carding”—purchasing retail items with counterfeit or stolen credit card information—on the Internet.  Under the slogan, “In Fraud We Trust,” the organization directed traffic and potential purchasers to the automated vending sites of its members, which served as online conduits to traffic in stolen means of identification, stolen financial and banking information, malware, and other illicit goods.  It also provided an escrow service to facilitate illicit digital currency transactions among its members and employed screening protocols that purported to ensure only high quality vendors of stolen cards, personally identifiable information, and other contraband were permitted to advertise to members.  In March 2017, there were 10,901 registered members of the Infraud Organization. 

During the course of its seven-year history, the Infraud Organization inflicted approximately $2.2 billion in intended losses, and more than $568 million in actual losses, on a wide swath of financial institutions, merchants, and private individuals, and would have continued to do so for the foreseeable future if left unchecked. 

The investigation was conducted by the Las Vegas Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Henderson, Nevada Police Department.  The Criminal Division’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from Thailand.  Deputy Chief Kelly Pearson and Trial Attorneys Chad W. McHenry and Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

This week, the President’s Commission on Law Enforcement and the Administration of Justice continued its series of hearings on community engagement, with testimony from faith leaders, and held a hearing on policing culture.  The hearings were conducted via teleconference and featured expert witnesses who provided testimony and answered questions from the commissioners.

On Tuesday, June 23, 2020, the commission received testimony from Robin Engel, Ph.D., Professor, University of Cincinnati; Michael Ranalli, Chief (Retired), Glenville, New York, Police Department; Hampton (Virginia) Police Chief Terry Sult; and Springboro (Ohio) Police Chief Jeff Kruithoff.

The panelists discussed policing culture and reasonable use of force.  An overarching theme throughout the panel was the need to use evidence-based research to inform successful reforms regarding police use of force.

On Wednesday, June 24, 2020, the commission received testimony from Sheriff James McDonell (retired), Los Angeles (Calif.) County; Ronal Serpas, Superintendent of Police of the New Orleans Police Department (retired) and Professor with the Loyola University New Orleans Criminal Justice Department; Chief Robert White (retired), Denver Police Department; and Sheriff Mike Chitwood, Volusia (Fla.) County.

The panel focused on the use of force and culture change.  The panelists discussed the importance of leading by example within the department, especially with regards to new officers; integrating community policing values throughout an entire academy curriculum instead of teaching it as a standalone course; acknowledging that while no single police incident represents an entire department, nothing undermines years of work developing community trust as quickly as incidents where police use unnecessary or excessive force; and learning from the successes of other departments and agencies.   

On Thursday, June 25, 2020, the commission received testimony from Jeff Ballabon, CEO B2 Strategic, Washington, DC; Rabbi Jack Moline, Executive Director, Interfaith Alliance, Washington DC; and Imam Talib Shareef, President of Masjid Muhammad, The Nation's Mosque.

The panel focused on the relationship between religious minorities and law enforcement.  The panelists discussed the importance of building relationships with law enforcement at a community level in order to change dynamics; the need for law enforcement to take steps at every level to investigate and prevent hate-based crime, as well as hold officers accountable for engaging in racial or religious profiling, targeting, and surveillance; and the value of breaking stereotypes and “challenging the narrative.”

For more information on the commission, please visit: https://www.justice.gov/ag/presidential-commission-law-enforcement-and-administration-justice

Audio recordings and transcripts of the hearings will be posted online once available.

On June 25, the U.S. House of Representatives and Senate passed identical bills, H.R. 7036 and S. 3377, to repeal the sunset provision of the Antitrust Criminal Penalty Enhancement and Reform Act (ACPERA). 

“We applaud both Houses of Congress for their bipartisan action and recognition of ACPERA’s importance in the fight to safeguard our free markets and protect American consumers from collusion,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.  “The Division wholeheartedly agrees with Congress’s findings that ‘[c]onspiracies among competitors to fix prices, rig bids, and allocate markets are categorically and irredeemably anticompetitive and contravene the competition policy of the United States.’” 

“The Division is firmly committed to the Leniency Program, which has been our most important prosecutorial tool for the last 26 years, particularly when it comes to international cartels,” said Antitrust Division Deputy Assistant Attorney General for Criminal Enforcement Richard A. Powers.  “Because of yesterday’s reauthorization, ACPERA’s incentives to self-report, seek leniency, and cooperate with our investigations will continue to assist the Division’s mission of deterring, detecting, and prosecuting cartel offenses.”

Congress enacted ACPERA in 2004 in part to provide greater incentives for corporations to self-report and cooperate pursuant to the Antitrust Division’s Corporate Leniency Policy.  Since 2004, ACPERA’s provisions have substantially strengthened the Antitrust Division’s ability to detect and prosecute anticompetitive cartel activity through the Leniency Program. 

From Fiscal Year 2010 to 2019, the Antitrust Division’s criminal prosecutions have resulted in over $9 billion in criminal fines and penalties, along with jail terms for more than 250 individuals.  Since the fall of 2019 alone, the Division obtained three criminal fines and penalties at or above the Sherman Act’s $100 million statutory maximum, and prosecuted antitrust violations affecting generic drugs, cancer patients, grocery store staples, financial markets.

If the legislation is signed by the President, ACPERA will continue to mitigate a successful leniency applicant’s civil damages exposure from treble damages to actual damages if the company provides civil plaintiffs with timely and satisfactory cooperation.  While treble damages liability can be an important deterrent for engaging in anti-competitive behavior, civil exposure also can deter self-reporting of criminal wrongdoing.  Therefore, the Department supports the reauthorization of ACPERA and the repeal of its sunset provision.

Assistant Attorney General Beth A. Williams issued the following statement today on the Senate’s confirmation of the 200th Article III judge under the Trump Administration.  Earlier this week, Williams penned an op-ed noting that the administration’s judicial appointments have earned the American Bar Association’s “Well Qualified” rating at nearly the highest rate in five decades. 

“The Department of Justice is pleased that today the Senate confirmed the 200th Article III judge since President Trump took office, including two Supreme Court justices, 53 Circuit Court judges, 143 District Court judges, and two Court of International Trade judges.  These judges are among the most qualified in history and — in committing to rule faithfully and impartially, to follow the law and not personal preference — they embody the highest ideals of our legal system.  We are proud of this historic milestone and grateful to these remarkable individuals for their willingness to serve our country, protect our Constitution, and uphold the rule of law.  The Department looks forward to their years of future service, and to the continued confirmation of principled and well-qualified jurists to our nation’s courts.”

An Oregon resident pleaded guilty today to conspiracy to defraud the United States by filing false claims, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to court documents and statements made in court, Lawrence Collins conspired with others to file false tax returns that claimed more than $400,000 in fraudulent refunds from the Internal Revenue Service (IRS). From 2009 through 2014, Collins obtained names, Social Security numbers, and dates of birth from other persons, including from inmates from a state penitentiary in Salem, Oregon, and provided that information to co-conspirators who used this information to seek fraudulent refunds from the IRS. Collins also provided bank account information and third-party mailing addresses for use on the returns in order to direct receipt of the fraudulent refunds. Once the refunds were received from the IRS, Collins divided the funds among the co-conspirators. 

U.S. Chief Judge Marco A. Hernandez scheduled sentencing for Sept. 14, 2020. At sentencing, Collins faces a maximum of 10 years in prison. Collins also faces a period of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Stephen K. Moulton and Leslie A. Goemaat, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.

Gareth David Long, 41, of Las Vegas, Nevada, was sentenced to serve 70 months in prison for running a scheme to steal millions of dollars from hundreds of thousands of consumers, the Department of Justice announced. 

Long was sentenced by Judge Andrew Gordon of the U.S. District Court for the District of Nevada as a result of his Nov. 5, 2019, guilty plea to wire fraud and aggravated identity theft charges in connection with the scheme that he operated.  As part of his guilty plea, Long admitted that he created and deposited checks drawn on the checking accounts of more than 375,000 victims without authorization during a six-month period in 2013.  Although Long had no authorization to charge the victims’ accounts, he represented to victims’ banks that the victims had authorized the debits.  When victims called to complain about the charges, Long instructed employees working for him to tell the victims that they had authorized the charges in connection with an online payday loan application.  Many of the victims were elderly.  Long used the proceeds of this scheme to purchase a ranch and 23 acres of land in Texas, three airplanes, cars, a fire truck, and construction and farm equipment, as well as to pay other personal expenses.

“The defendant exploited his access to sensitive personal and financial information to steal millions of dollars from victims throughout the United States” said Jody Hunt, Assistant Attorney General for the Justice Department’s Civil Division. “The Department of Justice is committed to protecting the public from such identity theft and fraud.” 

“The U.S. Postal Inspection Service (USPIS) has been at the forefront of investigating fraud schemes for many years,” said Delany E. De Leon-Colon, Inspector in Charge for the Criminal Investigations Group at the USPIS National Headquarters.  “We remain steadfast in our pursuit to safeguard the public from those who take advantage of their trusted access for personal gains. Anyone who engages in this type of fraud scheme should know Postal Inspectors will find them and they will be held accountable for their actions.”

From 2008 through 2013, Long operated a third-party payment processing company, V Internet Corp, which also did business as Altcharge and Check Process.  As a payment processor, Long specialized in the creation and deposit of remotely-created checks (RCCs).  An RCC is a check created not by the account holder but by the third-party payee.  In place of a signature, Long’s RCCs contained a typed statement claiming that the check was authorized by the account holder.  Because of this payment processing activity, Long possessed the personal and financial information of hundreds of thousands of consumers whose accounts he debited in 2012 and before.  

In January 2013, Long stopped acting as a third-party payment processor for other merchants, and simply started using RCCs to charge the bank accounts of consumers whose personal identifying information he had acquired over the previous five years, as well as other consumers whose information Long purchased in the form of “lead lists.”  Long did not have authorization to charge any of these victims’ accounts.   

During the wire fraud and identity theft scheme from January through July of 2013, Long created and deposited more than 750,000 RCCs totaling more than $22 million.  While approximately half of the RCCs were immediately reversed by victims’ banks, Long nevertheless succeeded in stealing approximately $11 million over a six-month period.

The U.S. Postal Inspection Service seized more than $2.9 million from Long’s company bank accounts.  Postal Inspectors also seized property that Long purchased with the proceeds of his fraudulent activity, including three airplanes and the other vehicles and property described above.  As part of the sentencing hearing, the court issued a forfeiture money judgment of more than $11.2 million and Long forfeited the ranch and land he purchased in Texas.

Trial Attorneys John W. Burke and Ehren Reynolds of the Civil Division’s Consumer Protection Branch are prosecuting the case in coordination with the U.S. Attorney’s Office for the District of Nevada.  USPIS investigated the case.

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors.  In particular, in March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep.  The department has likewise conducted hundreds of training's and outreach sessions across the country since the passage of the Act. 

More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage.  For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch.  Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov.  If you or someone you know has been a victim of elder fraud, help is standing by at the National Elder Fraud Hotline:  833–FRAUD–11 or 833–372–8311, every day, 6:00 a.m.–11:00 p.m. eastern time.  The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov. 

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Today, Attorney General William P. Barr issued the following statement on the introduction of a bill that would give law enforcement access to critical digital evidence if permitted by a court while also protecting privacy. The legislation is sponsored by Senators Lindsey Graham, Tom Cotton, and Marsha Blackburn.

“Passing legislation that allows warrant access to encrypted data will allow law enforcement to further provide for the safety and security of the American people. I applaud Chairman Graham and Senators Cotton and Blackburn for introducing the first-ever bill to address this issue.  

While strong encryption provides enormous benefits to society and is undoubtedly necessary for the security and privacy of Americans, end-to-end encryption technology is being abused by child predators, terrorists, drug traffickers, and even hackers to perpetrate their crimes and avoid detection.  Warrant-proof encryption allows these criminals to operate with impunity.  This is dangerous and unacceptable.

Indeed, the danger is particularly great for children who are targeted online for sexual exploitation, especially during this time of coronavirus lockdowns.  Survivors of child sexual abuse and their families have pleaded with technology companies to do more to prevent predators from exploiting their platforms to harm children.  We cannot allow these companies to elevate their profits and the privacy rights of these abusers over the safety and security of children.   

The bill announced today balances the privacy interests of consumers with the public safety interests of the community by requiring the makers of consumer devices to provide law enforcement with access to encrypted data when authorized by a judge.  I am confident that our world-class technology companies can engineer secure products that protect user information and allow for lawful access.  Data security and public safety are not mutually exclusive. Encryption should keep us safe and secure, not provide an impenetrable safe haven for predators, terrorists, and criminals.”  

The Department of Justice‘s Office of Community Oriented Policing Services (COPS Office) today announced nearly $42 million in funding to support state-level law enforcement agencies in combating the illegal manufacturing and distribution of methamphetamine, heroin, fentanyl, carfentanil, and prescription opioids.

“The scourge of opioid and methamphetamine use continues to take a devastating toll on our nation’s communities,” said COPS Office Director Phil Keith.  “By providing these resources to law enforcement to help combat the further spread, the COPS Office is demonstrating our commitment to this Administration’s priority of reducing drug use and protecting our citizens from this public health and safety crisis.”

Drug overdose deaths and opioid-involved deaths continue to increase in the United States.  Deaths from drug overdose are up among both men and women, all races, and adults of nearly all ages, with more than three out of five drug overdose deaths involving an opioid.  More than 130 people die every day in the United States after overdosing on opioids, while methamphetamine continues to be one of the most commonly misused stimulant drugs in the world and is the drug that most contributes to violent crime.

The COPS Office is awarding more than $29.7 million in grant funding to 14 state law enforcement agency task forces through the Anti-Heroin Task Force Program (AHTF).  AHTF provides three years of funding directly to state-level law enforcement agencies with multijurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high per capita rates of primary treatment admissions for heroin, fentanyl, carfentanil, and other opioids.  This funding will support the location or investigation of illicit activities through statewide collaboration related to the distribution of heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.

Through the COPS Anti-Methamphetamine Program (CAMP), the COPS Office is also awarding $12 million to 12 state law enforcement agencies.  These state agencies have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures.  State agencies are being awarded three years of funding through CAMP to support the location or investigation of illicit activities related to the manufacture and distribution of methamphetamine, including precursor diversion, laboratories, or methamphetamine trafficking.

The AHTF and CAMP funding has a tremendous impact on state investigative and seizure work.  During the five month period between October 2019 and February 2020, current AHTF grantees reported the seizure of over $4 million in cash and 1,213 firearms.  Similarly, for CAMP, grantees reported seizures of more than $7 million in cash and 1,577 firearms.

The complete list of Anti-Heroin Task Force Program award recipients, including funding amounts, can be found here:  https://cops.usdoj.gov/ahtf-award

The complete list of COPS Anti-Methamphetamine Program award recipients, including funding amounts, can be found here:  https://cops.usdoj.gov/camp-award

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 135,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.

On June 23, 2020, a federal court in Miami, Florida issued an order holding Vilbrun Simon and Simon Accounting & Tax, LLC in contempt for violating a permanent injunction that bars them from preparing or filing federal tax returns for others.

The United States filed a complaint on Nov. 28, 2017, alleging that Vilbrun Simon and Simon Accounting & Tax, LLC, along with codefendants Saintanise Agenord and Wilcienne Pierre, prepared returns that understated their customers’ tax due and overstated tax refunds claimed by their customers. After a three-day trial, the court issued a judgment and permanent injunction on March 26, 2019, that barred the defendants from preparing returns for customers.

Following a hearing on June 15, 2020, the court found that Vilbrun Simon and Simon Accounting & Tax, LLC violated the permanent injunction in two ways: (1) by failing to post signs outside their storefront informing their customers of the ban, and (2) by continuing to prepare tax returns for others. For these violations, the court held Vilbrun Simon and Simon Accounting & Tax, LLC in civil contempt and found that compensatory sanctions were warranted, with the amount of the sanctions — representing the fees they received for returns prepared in violation of the injunction, and the costs the United States incurred to investigate and bring their violations to the court’s attention — to be determined. 

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a return preparer and has launched a free directory of federal tax preparers.

In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

The Antitrust Division of the Department of Justice issued the 2020 edition of its annual Newsletter Update today. The Newsletter highlights the Antitrust Division’s recent activities, including responses to the COVID-19 pandemic, successes on civil and criminal enforcement, international cooperation, and competition advocacy. The Newsletter also includes a message from Assistant Attorney General Makan Delrahim.

“Unlike previous newsletters released during the ABA Spring Meeting, the Division shares this ‘Spring’ Update for 2020 during extraordinarily challenging times,” wrote Assistant Attorney General Delrahim in the “Message from the AAG.”  “The spread of Covid-19 has affected all aspects of our daily lives, as we face both the public health and economic effects of the virus.  As many of us do our part to prevent the spread of Covid-19, however, we were also gripped by the horrifying death of Mr. George Floyd in Minneapolis.  Despite these challenging times, these events have served to emphasize the resiliency of our nation.  They also underscore the critical nature of our work as federal prosecutors and the precious opportunities we have in our positions of public trust.  All of us have taken a solemn oath to support and defend the Constitution, and we strive each day to discharge our duties faithfully as employees of the Department of Justice.  In these times, the Antitrust Division remains steadfast in its mission to protect competition for the benefit of consumers.  As we embark onto the second half of this coming year, the Antitrust Division will continue to monitor pandemic developments and guidance, but do so without compromising on our mission to pursue violations of the antitrust laws on behalf of American consumers.”

The Newsletter highlights important milestones and accomplishments from the past year, and features profiles of Division leadership and staff. The newsletter can be found via our website at https://www.justice.gov/atr/division-operations/antitrust-division-update-2020  or pdf at /media/1074496/dl?inline.

Last week, the President’s Commission on Law Enforcement and the Administration of Justice continued its hearing on community engagement and held another hearing on research perspectives in criminal justice. The hearings were conducted via teleconference and featured expert witnesses who provided testimony and answered questions from the commissioners.

On Thursday, June 18, 2020, the commission received testimony from Scott Turner, Executive Director of the President’s Opportunity Zone Revitalization Council; Rev. Markel Hutchins, President & Chief Executive Officer of MovementForward, and; Rev. Charles Harrison, Senior Pastor, Barnes United Methodist Church, Indianapolis, Indiana, and President of the Indianapolis Ten Point Coalition.

The panelists discussed the role of community engagement in the criminal justice system. Each panelist testified to the overarching goal of building trust between law enforcement and communities, especially in high crime neighborhoods. Mr. Turner discussed the federal government’s role in fostering economic development in distressed communities, while Reverend Hutchins testified to the impact of getting to know one another across communities to break through stereotypes. Reverend Harrison spoke about engaging with community members, especially those with past criminal justice system contact, to get feedback about law enforcement, while also engaging law enforcement leadership. Eventually, Reverend Harrison was able to facilitate small group dialogues between young men in the communities and law enforcement officers to help bridge divides.

On Friday, June 19, 2020, the commission received testimony from Geoffrey Alpert, Ph.D., Professor, University of South Carolina; Gary Cordner, Ph.D., Academic Director, Baltimore Police Department; Sarah Guardiola, Chief Executive Officer, Skyway Leadership Institute, and; John M. MacDonald, Ph.D., Professor, University of Pennsylvania.

The panelists discussed research perspectives in criminal justice. Professor Alpert testified about the importance of knowing as much as possible about policing, so that shortcomings can be identified in policies, training, supervision, and systems of accountability. Professor Cordner provided recommendations to improve American policing – measuring what matters, evidence-based policing, and police education. Ms. Guardiola discussed how programs that partner youth with cops, educators, and other stakeholders, can be models of success for bridging divides between the community and law enforcement. Professor MacDonald testified about how place-based programs and policies can incentive reinvestment in high crime places, changing the psychical environment of disadvantaged places and generating health and public safety benefits.

For more information on the commission, please visit: https://www.justice.gov/ag/presidential-commission-law-enforcement-and-administration-justice.

Audio recordings and transcripts of the hearings will be posted online once available.

The Department of Justice’s Antitrust Division and the Securities and Exchange Commission have signed an interagency Memorandum of Understanding (“MOU”) to foster cooperation and communication between the agencies with the aim of enhancing competition in the securities industry. Assistant Attorney General Makan Delrahim of the Antitrust Division announced the first-ever MOU between the Antitrust Division and the SEC, which was executed with SEC Chairman Jay Clayton before a discussion on equity market structure hosted by MIT’s Golub Center for Finance and Policy this afternoon.

“The Antitrust Division and the SEC have prioritized close cooperation with one another in recent years to promote competitive conditions in the securities industry, benefitting both agencies’ enforcement missions,” stated Assistant Attorney General Delrahim. “This MOU institutionalizes a strong working relationship between our two agencies. I expect that it will lead to even more robust, comprehensive analyses incorporating both competition and securities laws concerns, resulting in stronger, healthier markets yielding enhanced consumer benefits.”

“As competition is embedded in our securities laws, there are many policy areas where the missions of the SEC and DOJ’s Antitrust Division align, but where our respective areas of expertise differ,” said SEC Chairman Jay Clayton. “By formalizing the exchange of knowledge between our agencies, we aim to foster even greater collaboration and cooperation to ensure that we maintain the efficient and competitive markets that American investors rely on.”

Key provisions of the MOU facilitate both communication and cooperation between the agencies. In particular, the MOU establishes a framework for the Antitrust Division and the SEC to continue regular discussions and review law enforcement and regulatory matters affecting competition in the securities industry, including provisions to establish periodic meetings among the respective agencies’ officials. The MOU also provides for the exchange of information and expertise the agencies believe to be potentially relevant and useful to their oversight and enforcement responsibilities, as appropriate and consistent with applicable legal and confidentiality restrictions.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Two licensed Virginia attorneys pleaded guilty today to federal extortion charges, admitting their roles in a scheme to extort a multinational chemicals company by threatening to inflict substantial financial and reputational harm on the company if their demands for a $200 million payment disguised as a purported “consulting agreement” were not met.

Timothy Litzenburg, 38, of Charlottesville, Virginia, and Daniel Kincheloe, 41, of Glen Allen, Virginia, each pleaded guilty today to one count of transmitting interstate communications with the intent to extort, before U.S. Magistrate Judge Joel C. Hoppe of the Western District of Virginia.  Litzenburg and Kincheloe will be sentenced on Sept. 18, 2020, before U.S. District Court Judge Norman K. Moon.

“This is a case where two attorneys blew well past the line of aggressive advocacy and crossed deep into the territory of illegal extortion, in a brazen attempt to enrich themselves by extracting millions of dollars from a multinational company,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “Today’s pleas underscore that when crimes are committed, members of the bar, like all members of the public, will be held accountable for their actions.”

“The consequences of extortion are far reaching, affecting not only individuals, but also the economy in the United States and the world’s financial markets,” said Inspector in Charge Delany De Leon-Colon of the U.S. Postal Inspection Service (USPIS).  “Those who engage in this type of abuse of power while in positions of authority should know they cannot escape detection. They will be found and they will be held accountable for their actions.”

As part of their guilty pleas, Litzenburg and Kincheloe admitted that in approximately October 2019, Litzenburg approached a company (Company 1) and threatened to make public statements alleging that Company 1 had significant civil liability for manufacturing a purportedly harmful chemical used in a common household product used to kill weeds.  Litzenburg and Kincheloe also admitted that after describing the possibility of damaging lawsuits against Company 1, Litzenburg proposed, in sum and substance, that he and Kincheloe enter into a “consulting arrangement” with Company 1 that would create a purported conflict-of-interest that would effectively stop them from representing their clients as plaintiffs in litigation against Company 1. Thereafter, Litzenburg and Kincheloe admitted that Litzenburg, with Kincheloe’s knowledge and agreement, demanded that Company 1 pay Litzenburg, Kincheloe, and others, a total of $200 million in purported “consulting fees.”

Litzenburg and Kincheloe also admitted that after making their demand for $200 million from Company 1, they registered a Virginia corporation for the purpose of receiving monies from Company 1, and that they agreed to split the funds from Company 1 amongst themselves and their associates, and to not distribute any of the monies Company 1 paid them as purported “consulting fees” to their existing clients.  Litzenburg and Kincheloe admitted that after making their demand for $200 million, Litzenburg threatened Company 1 that they and others would commence litigation that would become “an ongoing and exponentially growing problem for [Company 1], particularly when the media inevitably takes notice[,]” and that such litigation would cost Company 1 and its publicly-traded parent company “billions, setting aside the associated drop in stock price and reputation damage.”

Litzenburg and Kincheloe also admitted that in an email written by Litzenburg, they threatened Company 1 that unless they were paid $200 million, Company 1 would have “thousands of future plaintiffs against [Company 1,]” and that “in the absence of a so-called ‘global’ or final deal with me, this will certainly balloon into an existential threat to [Company 1].”

Litzenburg and Kincheloe also admitted that they met in person with attorneys representing Company 1 at a conference center in Charlottesville, Virginia, and during that meeting Litzenburg again threatened to injure the property and reputation of Company 1 and its parent company unless they were paid $200 million pursuant to purported “consulting arrangements,” and that without such a deal there was no way Company 1 “gets out of it for less” than “[a] billion. Yeah. No, I mean, nuisance value, uh, defense lawyer fees, a hit in the stock when this gets filed and served, maybe the press conference, whatever.”  Later in the same meeting, Litzenburg and Kincheloe admitted that Litzenburg again stated, in sum and in part, that if they commenced litigation it would have adverse effects on Company 1’s parent’s stock price, which Litzenburg described as “a 40 percent stock loss coming off the top.” 

Litzenburg also admitted that, during other communications with Company 1, he told Company 1 that if he received the $200 million in “consulting fees” he would not discuss Company 1 or its parent company with his current clients, and that he was willing to “take a dive” during a deposition of a toxicology expert to deter potential future claims related to litigation against Company 1.

The USPIS investigated the case.  Principal Assistant Chief Henry P. Van Dyck and Assistant Chief L. Rush Atkinson of the Criminal Division’s Fraud Section are prosecuting the case. 

The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

The Department of Justice today filed a statement of interest in Idaho federal court defending Idaho’s Fairness in Women’s Sports Act against a challenge under the Constitution’s Equal Protection Clause.  

“Allowing biological males to compete in all-female sports is fundamentally unfair to female athletes” said Attorney General William P. Barr.  “Under the Constitution, the Equal Protection Clause allows Idaho to recognize the physiological differences between the biological sexes in athletics.  Because of these differences, the Fairness Act’s limiting of certain athletic teams to biological females provides equal protection.  This limitation is based on the same exact interest that allows the creation of sex-specific athletic teams in the first place — namely, the goal of ensuring that biological females have equal athletic opportunities.  Single-sex athletics is rooted in the reality of biological differences between the sexes and should stay rooted in objective biological fact.”

On March 30, 2020, Idaho enacted the Fairness in Women’s Sports Act (Fairness Act), Idaho Code Ann. § 33-6202 et seq., which goes into effect in July 2020.  Idaho’s Fairness Act contains two main provisions.  First, covered athletic teams “shall be expressly designated as one (1) of the following based on biological sex: (a) Males, men, or boys; (b) Females, women, or girls; or (c) Coed or mixed.”  Idaho Code Ann. § 33-6203(1).  Second, “[a]thletic teams or sports designated for females, women, or girls shall not be open to students of the male sex.”  Id. § 33-6203(2).  The Fairness Act does not contain a comparable limitation for biological females who wish to participate on a team designated for biological males. 

In enacting the Fairness Act, Idaho determined that “[h]aving separate sex specific teams furthers efforts to promote sex equality.  Sex-specific teams accomplish this by providing opportunities for female athletes to demonstrate their skill, strength, and athletic abilities while also providing them with opportunities to obtain recognition and accolades, college scholarships, and the numerous other long-term benefits that flow from success in athletic endeavors.”  Id. § 33-6202(12).  In support of this conclusion, the Fairness Act cites authority establishing that inherent physiological differences between men and women generally include a difference in “strength, speed, and endurance” that results in “different athletic capabilities,” which generally give men a significant advantage in head-to-head competition.  Id. § 33-6202(1)-(10). 

In its statement of interest, the United States explains that the Equal Protection Clause of the Constitution does not require States to abandon their efforts to provide biological women with equal opportunity to compete for, and enjoy the life-long benefits that flow from, participation in school athletics in order to accommodate the team preferences of transgender athletes.  Put differently, the Constitution does not require Idaho to provide the special treatment plaintiffs request, under which biological males are allowed to compete against biological females if and only if the biological males are transgender.

On Thursday, June 18, and Friday, June 19, Attorney General William P. Barr traveled to Boston and New York City to visit with leadership and members of each city’s police department.  In Boston, the Attorney General met with Commissioner William Gross and his leadership team.  In New York City, the Attorney General met with Deputy Commissioner Ben Tucker and other senior NYPD officials.  In both meetings, the Attorney General expressed his deep appreciation for, and importance of, the service and work of their departments and discussed policing issues that have been at the forefront of national conversation and debate.

The purpose of the Attorney General’s visit was to show the Administration’s strong support for law enforcement and seek the input of police leadership on a range of issues, including President Trump’s recent Executive Order on Safe Policing for Safe Communities, as well as other issues involving community relations, use of force, officer training, and officer wellness.  These visits were the first in a series of meetings Attorney General Barr intends to hold in the coming weeks with police leadership across the nation.

Assistant Attorney General for Civil Rights Eric Dreiband issued the following statement today regarding Juneteenth:

“On June 19, 1865, the Emancipation Proclamation was first announced to enslaved African-Americans in Texas.  On that day, Union soldiers, led by Major General Gordon Granger, landed at Galveston, Texas, with news that the Civil War was over and that the enslaved were now free.  This was two and a half years after President Abraham Lincoln’s Emancipation Proclamation became the official policy of the United States on January 1, 1863.

“Today, “Juneteenth” has become a day to recognize the abolition of slavery and the continuing work to promote racial equality for all Americans.

“When President Lincoln issued the Emancipation Proclamation, it had little impact on Texans due to the minimal number of Union troops to enforce it.  For over two years, 250,000 men, women, and children remained enslaved in Texas.  When Confederate forces surrendered in April of 1865, and Union soldiers led by General Granger arrived in Texas, the Union army overcame the resistance.

“After General Granger arrived in Texas, he issued General Order Number 3.  It began:

"The people of Texas are informed that in accordance with a Proclamation from the Executive of the United States, all slaves are free.  This involves an absolute equality of rights and rights of property between former masters and slaves, and the connection heretofore existing between them becomes that between employer and hired laborer."

“The Juneteenth announcement in Texas sparked joyous celebrations of freedom that have grown in communities across our nation for the past 155 years.  Today, forty-seven states and the District of Columbia officially commemorate Juneteenth.

“But even after the Juneteenth announcement, a regime of racial violence, intimidation, abuses of authority under color of law, and the use of debts, threats, and assaults held many of the ostensibly freed citizens in conditions of inequality.

“While Juneteenth is a joyous celebration of emancipation from enslavement, it also serves as a solemn reminder that words alone cannot deliver on the promises of freedom, individual rights, and equal justice for all.  It is a reminder that, although our nation has come a long way from our history of state-sanctioned slavery and segregation, our work remains unfinished.

“It would be another century before the civil rights movement – in the second wave of Reconstruction – resulted in passage of the Civil Rights Act of 1964.  That long overdue legislation was the result of courageous citizens who spoke out against injustice, made their voices heard, and propelled our nation toward a more complete embrace of freedom and equality.

“In the decades since 1964, the Civil Rights Division has served on the front lines of enforcing laws against racial injustice and deprivations of individual rights.  It has been steadfast in its commitment to vindicating the rights of individuals who have suffered discrimination and holding perpetrators accountable for the violations they commit.

“This year, Juneteenth affords us an opportunity for somber reflection on our past and future as we continue to work for the realization of the promise of equal rights under the law for all African Americans, so celebrated at the first Juneteenth.  The Civil Rights Division will continue to vigorously enforce the laws that protect the rights, lives, and freedoms guaranteed to all individuals under the law. 

“Yet, Juneteenth also serves as a reminder of the grief and anguish our nation has experienced over the lives lost and the dreams destroyed by acts of racially-motived violence, abuses of power, and injustice. 

“Just five years ago, as Juneteenth approached, our nation was reeling from the horrific act of racial violence that took the lives of nine worshippers at Mother Emmanuel AME Church in Charleston, South Carolina on June 17, 2015.  The Department of Justice convicted and obtained the ultimate penalty against the perpetrator. 

“This Juneteenth, we recognize the progress our country has made, and the work that remains unfinished.  We pledge to continue to deliver, to all Americans regardless of race, on the promises of freedom and equal justice under the law enshrined in the Constitution and laws of the United States.”